Constructing a knight costume out of cardboard, he makes his way to Brooklyn to attend the party, only to discover it is actually a trap set by a group of deranged art students.

The art students, in costume, include Paul (a gothic vampire), Macon (a werewolf), Sky (a zombie cheerleader), Lexi (Pris from Blade Runner), and Bill (a Baseball Fury from The Warriors).

They intend to commit a murder as a piece of artwork to impress Alexander, their wealthy and sinister patron, in the hopes that they will receive a large arts grant from him.

Drugs and alcohol fuel the group as they decide to wait for the witching hour, at which time they will all stab Chris in unison.

Macon confesses his long time love for Lexi and recounts a story of when they were in high school and ate a popsicle together on a water tower.

Macon, badly burned yet still alive, gets his chainsaw and uses it to attack Zycho; brutally killing him and passing out shortly afterward.

Chris attempts to hide in a performance art exhibit and Bill is approached by the organizer, Cicero, and asked if he has seen Alexander as a grant was promised to him.

He exits the room, borrowing a security guard's phone to dial emergency services, explicitly pointing out that the scene is real - not art.

Chris disposes of his anti-anxiety medication and arrives home, where his cat, Sir Lancelot, finally gives him his chair back.

The Lab of Madness began with Christopher Sharp, Macon Blair, and Jeremy Saulnier as they were growing up in the 1980s and shooting short horror films on a VHS Camcorder and Super 8.

The group would often do school assignments as video projects, so their vast filmography includes interpretations of classical works such as Macbeth and Beowulf.

After failing to find investors, the group decided to greenlight Murder Party with no money in August 2005, and in February 2006 they began shooting.