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In American Horror Story: Asylum, the doctor pulled out a microchip out of Kit's neck that then turned into a bug. They showed it a few more times in the following episodes.

At one point later in the season the doctor was yelling at Kit about the bug and asked which orifice the bug crawled back into so he could retrieve it.

What actually happened to the bug?

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A number of plotlines seemed to just get lost or dropped from that season of AHS. I hope the next season is better. – lonstar Oct 1 '13 at 18:31
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From the American Horror Story wiki:

After making a small incision, he discovers what appears to be a microchip, an unknown technology to the era. After placing it on a tray, it sprouts six segmented "legs" and skitters away(1). The micro-bot appears to be almost indestructible, as it is able to autonomously reassemble itself after being dissected into several parts and welded by Arden, who believes its purpose to be espionage(2). Its current whereabouts are unknown but Dr. Arden believes that it has reintroduced itself to Kit's body(3).

(1) Episode: Welcome to Briarcliff
(2) Episode: Nor'easter
(3) Episode: I Am Anne Frank: Part 1

The micro-bot hasn't reappeared since.

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Thank you. This solidifies that there is a plot hole as mentioned before. Pointless. – DustinDavis Mar 4 '14 at 18:28

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