On their walk to school the next day, Woodrow tells Gypsy that he's sorry about her dad and that he didn't know all the details until Granny told him last night.
He also brings up the time that she was yelling, "Don't look in the window!" at the movie—that was obviously related to her memory of finding her dad.
He admits that he's always been jealous of her because she's pretty and seems to have things easy, but he was clearly wrong; she's gone through a whole lot that he couldn't even imagine.
One of the girls at school runs out to meet them and seems shocked at Gypsy's hair. Gypsy immediately acts super confident and starts sashaying around, saying that it's a Dixie Pixie and is the latest thing out of New York City.
In no time at all, the other kids are agreeing that it's super fashionable and saying they want to go get their hair cut, too. Gypsy should consider a future career in advertising—this girl can sell anything.
The very next day, a bunch of girls at school show up with short hair, and about thirty more plan to get theirs done over the weekend. Gypsy's started a new trend.