The chapter begins with Harry, Ron, and Hermione returning to Hogwarts via the thestrals. After the Sorting Ceremony and Dumbledore’s ominous speech about the darkening times ahead, Harry notices Draco Malfoy slipping away from the Slytherin table, not joining his housemates.
Then comes the critical scene: Harry spots Draco Malfoy slipping away from his mother, Narcissa, and disappearing into — the dark artifacts shop in Knockturn Alley. Using his Invisibility Cloak, Harry eavesdrops. He hears Draco threatening Borgin: "You haven’t sold it? ... You’re going to have to fix it. ... I’ll need to keep it in here ... I might need you to hide it."
Neither performance softens the blow: This is the chapter where Harry realizes the war has come to the school corridors.