Caroline is horrified by the illegal aspect of the cupcake sales.
The episode features a scene with children throwing food during a failed cupcake party hosted by the girls. Context [S2E12] And the High Holidays
A SWAT team busts down a customer's door while Max and Caroline are conducting a deal, prompting Caroline to immediately end their illicit cupcake business. Caroline is horrified by the illegal aspect of
Desperate to pay their overdue rent for the new cupcake shop, Max and Caroline get involved in a shady business, selling their cupcakes to "high" customers (stoners). Key Plot Points [S2E12] And the High Holidays
Caroline follows Max to a "run," only to find out that it involves delivering cupcakes to stoners in exchange for quick cash.