From the episode.
Manny walks up to Peter (the new guy that her best friend Emma has a huge crush on) at his locker the day after the party, she was so drunk that she doesn't even remember letting him video her taking off her top.
Peter unashamed tells her what happens and that he wants to see her again. She reminds him that Emma likes him and encourages him to go out with her but Peter is interested in Manny.
A different path.
Manny responds "Last night was what it was and nothing more. I'm trusting you that it stays between us." He picks up his bag and says "Just think about going out with me, don't worry the video is our secret." Then he walks away.
Later that day after a confrontation with her mother in which Manny is told it would be best for her to keep staying with Emma's family Manny goes into the guys locker room and starts looking through Peter's bag. He sees her through the door starts videoing her and as he walks up behind her ask "Looking for this? So when are we going out?" She stands up and says "This isn't funny any more." He steps over the bench toward her and again ask her when they are going out. Manny's emotions get the best of her as she pushes the camera away telling him that she will never go out with him and calling him a freak. She realizes she was to harsh and as he turns away with a hurt look she ask "Just give me back the tape please" choking up on her emotions slightly. Now he has anger in his voice as he looks at her and says "Never tell a shopkeeper that you're desperate to buy his merchandise and my price just went up." He clarifies that she'll have to pay for a $3000 camera he wants. When she says she doesn't have the money he calls her a liar and reminds her that the night before she'd been talking about getting plastic surgery. She begs him telling him that her father took away her credit card and controls her bank account.
"Well we have a few options, if you can't come up with the money then either I can start selling tickets to our little movie" he hits play on the camera and Manny hears her own voice saying "and you can sell this for a million dollars because I'm going to be famous." Disgusted and hurt Manny starts to walk toward the door but Peter steps in front of her "There is another option, I've been asking you to go out with me. If we skip to the end of the date then I'll get rid of the video." Manny's eyes get big "What are you asking?" He smiles looking up and down her body. "This time I get to see you naked and um my hands wont be on a camera." Manny feels trapped, she can't believe what he's saying or that he's almost laughing as he says it.
"I'm not a whore, I won't have sex with you." Peter still blocking her path to the door answers "I wasn't trying to say you are but I have something you want and you are something I want. We don't have to go all the way but make me happy or everybody in school sees that video. How will Emma feel about you getting topless with me at a party? And without her how many friends is the porno-girl going to have?" Images swirl through Manny's mind, Emma kicking Manny out of her life, people seeing the video, having to face the school and her parents afterward. "Peter, please" he interrupts "You know you're going to end up saying yes, the longer you wait the higher my price will be. One more thing if I do show this video, every guy in school will be expecting his turn with you. A little fun with me is a pretty low price. So when do we meet?" Manny answers in barely more then a whisper "I may be able to get the money, if I pay you or if I say yes then you'll give me the video?" He promises that he will and she responds "I can meet you tomorrow night" and he tells her where to show up then steps aside so she can leave the locker room. Manny feels nauseous the rest of the day and struggles to act naturally.
Manny attempts to get the money she'd paid up front to the plastic surgeon back but is told that her parents have already received the reimbursement. Manny decides that she can't let the video get out and that there is only one other choice. Emma knows something is wrong but Manny avoids talking about what is bothering her that night and throughout the next day. Manny's stomach knots up more and more as time to meet Peter approaches.