This post contains spoilers, proceed with caution.
Madeline accidentally killed her mother after following her on that New Year's Eve in 1999. She kept her mother's necklace after disposing her body. Her aunt Simone found the necklace in her jewelry box right before the masquerade. She went to Diana and Diana went to Sebastian. He killed Diana to protect Maddie.
But the real twist was this, Nicky Hunter was really Cole. Nicky always knew that she was born in the wrong body. She and her mother had been seeing a doctor in Seattle and were going to run away to Seattle the night Hope was killed. Nicky made it to Seattle, Hope did not.
Sebastian knew that Nicky was Cole by the postage she used the first time she contacted him.
Sebastian killed himself after confessing to killing Diana.
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