I'm not really expecting it to drag on really. It's not a sustainable plot.
My theories Sally is the key to it. She's more than likely the cheater, when she gets pulled up about it, she'll throw Magnar under the bus. Cause let's not forget, until they broke up he would happily pay you for answers, was it for her.
And then everything will come out in the wash...
I think it seems clearer that the MC's newfound friendship (or something more) with Sally is going to be key.
Some obvious groundwork was put down here, the fact that Sally is being cut off by the Nerd guys sharing notes with her, the fact this annoys her, and the fact she likes to party with the DIKs. All of this likely adds up to Sally finding what Magnar has been up to and telling the MC who can tells the DIKs who can then tell the other frats and they'll all go after Magnar for this.
It might not reduce all hostilities though since it's clear Magnar is showing these frats the things that the DIKs have done to them over the years, but at least they'll take down the person who's creating all this chaos and with any luck it will be ended in the next episode.
Damn nice theory earlier people put out Lily being the cheater since she is street smart ans gave a wink st mid terms. I knew it was bullshit since she revealed her goal to be in medical field and prove her parents wrong.
And now we know Sally is actually not smart and Lily has been brightest student since childhood. Probably those cheat sheets were for Sally.
Sally's not in the same year and classes as the MC so she wasn't sitting the same exams. Those notes helped for the exam being taken at the time which Sally was not part of.