A new evil revealed on 'American Horror Story'

The final "American Horror Story: Asylum" of 2012 followed up on the events of last week's twisted holiday episode.

We started out in the present day, where we met Johnny (Dylan McDermott, in a psychiatric role reversal from the first season), who was meeting with a psychiatrist.

He explained to her his childhood fascination with killing and skinning animals. But he pointed out that it didn't stop there. His last name is Thredson, and he is the new Bloody Face. Later, a patient discovered the psychiatrist's body and met up with Bloody Face.

Back in the '60s, it turned out that "Santa" survived the attack from Jude, and he, Dr. Arden and Sister Mary Eunice conspired to point the finger at her for the security guard's death, earning her a place in the asylum ...  as a patient! (Irony!)

Jude's first big move as a patient was to break the record constantly playing "Dominique," earning applause from her fellow inmates. She's out for revenge against Mary Eunice and Arden at the first opportunity, and she may team up with Lana.

Monsignor Howard paid a visit to the asylum, thinking he could save "Santa's" soul. Instead, after being baptized, "Santa" tried to drown him, and the Monsignor was later found crucified.

Lana convinced Kit that they had no choice but to kill Dr. Thredson. She informed Thredson - who's been stashed in a closet - that she aborted his child.

She took the opportunity to use the same coat hanger from the abortion to kill Thredson, but when she went back to the closet to kill him, he was gone. She confronted Mary Eunice, accusing her of helping Thredson escape.

Mary Eunice informed her that she was still pregnant, and it's a boy.

Meanwhile, Dr. Arden brought Kit into his office, telling him how the "little green men" took Grace's body.

Arden had a theory that the aliens take women he's had sex with, and that for some reason they want to keep him alive.

Kit agreed to be put to death for a couple of minutes to test the theory. When Arden administered a shot to stop his heart, suddenly the white light came back and Arden walked down the asylum hall, into one of the rooms. The woman with microcephaly told him that the baby is almost full term. The pregnant woman was revealed to be Grace. Whaaaaa?

Just when I thought I had a grasp of what is going on here, we get this twist. The alien stuff is still the biggest mystery this season.

With a few episodes left for 2013, where do you think things might go from here? What exactly is going on with Grace? Alien baby? Or perhaps even crazier: was her baby switched with Lana's somehow? (Nah, an alien baby is still pretty out there.)

Share your thoughts and theories on video or comment below, and we'll talk again in the new year.