At a crowded social event Melanie is publicly accused when a piece of lingerie embroidered "Melanie" is produced and guests jeer. Celeste seizes the moment, claiming Melanie conspired "with him" to ruin her and calculating she can marry into the Moore family if Melanie is blamed; Celeste is identified as Captain Leigh's wife. David steps in, declaring "Melanie is my fiancée" and warning of consequences. Melanie insists the item was stolen and pleads innocence. Someone offers, "Let me help you prove it," but a sudden interruption ("Ah!") breaks the scene, leaving Melanie's reputation and next moves unresolved.