Skip's business proposition to Rye Gerhardt, the first UFO and Captain Cheney's stupidity are all factors which lead the series towards the point fans have been waiting for: the massacre at Sioux Falls. Mentioned in the first season of Fargo by a much older Lou Solverson, the massacre does exactly what it says on the tin. Assuming that the plain clothes police officers are gangsters from the Kansas City mob, the Gerhardts storm in guns blazing, leaving few survivors.
