Here is the reality check Phyllis is ignoring: Cane is not just a corporate suit; On The Young and the Restless, he is the son of Colin Ashby. Grifting, long cons, and traps are in his DNA, and he will make her pay.
The Young and the Restless: Revenge is a tasty dish

Phyllis Summers (Michelle Stafford) has made a career out of underestimating men, but she just made a fatal error with the new and improved Cane Ashby. By looking Billy Flynn’s Cane dead in the eye and lying about stealing his AI software—even after he gave her multiple chances to come clean—Phyllis sealed her fate. She thinks she is in the clear because Victor Newman (Eric Braeden) successfully used the stolen tech to destroy Arabesque, but she fails to realize that was exactly what Cane was waiting for.
The moment Cane realized his software was missing, he knew exactly who took it. His "interrogations" of Phyllis weren't about finding the truth; they were a character test. He gave her a lifeline, and true to form, "Red" chose to double down on the lie. Now, the mercy window is closed.
So, what is Cane’s plan? It is almost certainly a "Trojan Horse" scenario.

Cane likely anticipated that Phyllis, desperate for cash and clout, would shop the software to the highest bidder—Victor. He allowed Victor to use the program to decimate Arabesque for a specific reason: to create a paper trail. If Cane had stopped them earlier, it would have been a "he said, she said" dispute. But now? The software has been deployed. The damage to Arabesque is quantifiable. The fingerprints are everywhere.
Cane’s revenge won't be a screaming match in the hotel lobby. It will be a legal nuclear bomb. He is poised to reveal that the software Victor used—the software Phyllis "sold" him—contains a signature embedded deep in the code that proves indisputable ownership. By waiting until after the destruction of Arabesque, Cane has trapped Newman Enterprises in a massive intellectual property lawsuit and a corporate espionage scandal.
This is where the genius lies: Cane doesn't have to destroy Phyllis himself. He just has to hand the gun to Victor Newman. Once Victor realizes that Phyllis sold him "hot" merchandise that exposes his company to billions in liability, he will eviscerate her. Victor hates nothing more than being made to look foolish or vulnerable.
Phyllis thinks she secured her future by helping Victor crush a rival. In reality, she just walked into a trap set by a man she thought was too "nice" to fight back. Cane isn't going to fire her; he is going to make sure she never works in this town again. The checkmate is coming, and for once, Phyllis won’t be able to hack her way out of it.
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