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Austin is the captial city of Texas.
Miles Lydon, a member of the Rising Tide, was approached by Raina in Austin, convincing him to hack one of S.H.I.E.L.D.'s data streams in exchange for one million dollars. Raina convinced Lydon by telling him he had a gift that should be shared, and masqueraded her true intentions by telling him she was a fan of the Rising Tide, offering money that could be traced back to an eco-research laboratory studying centipedes.
Skye was able to locate the hacker, who unbeknownst to the rest of her team, was her former boyfriend Miles Lydon, a world renowned hacker, so the team set a course for Austin, but Skye warned Lydon about the intended capture.
Arrest of Miles Lydon
Grant Ward located Miles Lydon near one of the cafés he used for his hacks in Austin, but Lydon realized he was being watched and tried to escape in a car. Phil Coulson pursued him in the team's SUV, losing him when Lydon activated a hack that allowed him to control all the traffic lights in the area. In the ensuing chaos, Lydon was able to escape and returned to his apartment.
Inside his apartment, Lydon was greeted by Skye, who confronted him for having hacked S.H.I.E.L.D. knowing she was inside the organization. Skye was angry at Lydon as he could have ruined everything she wanted to do, but Lydon replied that he had missed her, so they started to kiss passionately.
As Skye was about to leave, worrying that the team could find her if they found Lydon, as he was partially responsible of the kidnapping of Chan Ho Yin, Lydon and Skye commented how it felt to be inside S.H.I.E.L.D., wanting to know stories if she ever gets a leave permission.
Under Coulson's orders, Melinda May had been following Skye, as Coulson thought she was hiding something. Skye found May waiting inside the apartment, and prompted her to get dressed.
Coulson and the rest of the team arrived at the apartment, and although Skye tried to explain her reasons, Coulson did not let her speak and started interrogating her about how long had she been in contact with an active suspect, and she replied that she only warned Lydon because they mutually cared for each other, not because they were working together.
As Lydon did not cooperate while May was interrogating him, Coulson ordered to gather all the evidence and take both Lydon and Skye as prisoners.