Alvarez continued to sit in Solitary for the murder of Carlos Ricardo. A one-hour rec time was created to improve conditions, where Alvarez met with Luis Beviloqua, cousin to Ricardo. Beviloqua was going to kill Alvarez, but William Giles freaked out and stabbed Beviloqua and Alvarez.
[Episode 25: "A Cock and Balls Story"]

Alvarez awoke in the hospital, where he was amazed that Giles had been the one to stab him. Inmate Agamemnan Busmalis, while mopping the hospital, revealed to Alvarez that he is digging another tunnel out of Oz. The Latinos wanted Alvarez dead and convinced Carlos Martinez to try and kill him. Martinez failed. Busmalis and Alvarez escaped through the tunnel.
[Episode 26: "Obituaries"]

Busmalis was captured very quickly, but Alvarez continued to elude police.
[Episode 27: "The Bill of Wrongs"]

After having escaped six months earlier, Alvarez was re-captured at the border to Mexico. Warden Glynn shoved him back into Solitary Confinement.
[Episode 34: "Conversions"]

He made an offer to Glynn: let him return to Emerald City, and in return he will give Glynn information. Glynn accepted, and Alvarez returned to the news that Hernandez is dead and Enrique Morales runs El Norte.
[Episode 35: "Revenge Is Sweet"]

Alvarez found himself screwed as his plan slowly backfired. Glynn wasn't getting satisfactory information and Morales didn't trust him. Alvarez tried to get Burr Redding to have Morales killed, but Redding declined. Finally, El Norte member Jorge Vasquez attacked Alvarez, and Alvarez slit his throat, thus sending him back to Solitary.
[Episode 36: "Cuts Like A Knife"]