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Highlights:
Bakugo informs Midoriya that he knows his quirk is from All Might. "What part of you made All Might do what he did? Let me see for myself. Let's fight. Right here right now."
Midoriya sees Bakugo's pain and resolves to fight him with everything he's got.
All Might intervenes at the end of their fight. He explains everything to Bakugo telling him that what happened was not his fault. Bakugo swears he won't tell anyone what he knows.
Mr. Aizawa punishes the boys. House arrest: 4 days for Bakugo because he threw the first punch and 3 days for Midoriya.
NOTE: When I read this in the manga, it broke my heart. You could feel the agony Bakugo was going through. He felt his weakness caused All Might's retirement.
NOTE: Takes place in volume 13 of the manga.