The Young and the Restless spoilers: Kyle’s shocking leverage, Phyllis tempts Cane, and Victor faces new threats

The Young and the Restless spoilers for the episode set to air on January 8, 2026

Phyllis pushes Cane toward a darker path

Cane Ashby has been having a hard time dealing with Lily Winters’ choice to leave town, and his emotional condition makes it easy for others to trick him. Phyllis Summers finds Cane at a weak moment and does not wait to remind him that Lily usually leaves when things get hard. From Phyllis’ point of view, Lily leaving just proves what she has told Cane all along.

Rather than telling Cane to keep following Lily, Phyllis pushes him toward being a different kind of person, one who does not care about being good or being loved. She sees that Cane could be mean and tough again, and she seems excited to make their team-up much stronger.

As they “change things up,” Phyllis hopes Cane will finally stop trying to be good enough for Lily and focus on power moves that could help them both.


Jack and Diane weigh Cane’s dangerous hints

Jack Abbott goes back home after his own tense talk with Cane, bringing bad news to Diane Jenkins Abbott. Cane hinted that there might be a way to prove Victor Newman used the AI program, but he also made it clear that getting real proof would not be easy or safe.

Kyle Abbott (Image via YouTube / Y&R INSIDER)

Jack shares his worries with Diane, knowing that any move against Victor is very dangerous. With Phyllis already mixed up with Cane, Jack and Diane cannot be sure who to trust. The situation makes them think about how far they are ready to go and if trusting Cane or anyone near him is a mistake waiting to happen.


Kyle uncovers shocking leverage against Victor

Just as Jack and Diane begin to doubt their choices, Kyle Abbott steps in with a surprising new plan. Kyle shares shocking news about Matt Clark and explains how it connects right back to Victor Newman. According to what Kyle found, Victor may have used the AI program to completely steal all of Matt’s money.

This news changes everything. If Kyle can prove his story, the Abbotts might not need proof about Arabesque at all. Evidence of what Victor did to Matt could be enough to show he broke the law and trap Victor in a corner. Kyle believes this power could force Victor to give up the AI program.


The Abbotts consider forcing Victor’s hand

With Kyle’s news on the table, Jack and Diane begin to see a clearer way forward. Proving Victor’s part in stealing money could give the Abbotts exactly what they need to make a deal or a threat from a position of strength. However, fighting Victor Newman is never easy, and he could always try to get back at them.


Audra and Holden agree to bury the past

Meanwhile, Audra Charles and Holden Novak reach a fragile truce. After weeks of tension, they agree to stop the constant bickering and present a united front, especially when it comes to keeping their shared LA history out of the spotlight. Holden decides not to reveal any additional details to Claire Newman, and Audra supports that choice.

Their agreement signals a temporary peace, but The Young and the Restless spoilers hint that this won’t be the end of their troubles. Secrets have a way of resurfacing in Genoa City, and despite their efforts, Audra and Holden may soon face obstacles that test their resolve to keep the past buried.