In "Paranormal Activity," a psychic is brought to Katie and her boyfriend Micah's (Micah Sloat) condo after the couple experiences demonic disruptions. During his visit, the psychic says that he senses "negative energy" there. As the couple chats with the psychic, Micah jokes about not inviting Katie's mother into the condo because she would bring even more negative energy. Although the line was a bit of a throwaway in 2009, it would eventually turn the climax of "Paranormal Activity 3" into a plot hole.
The "Paranormal Activity 3" plot hole is rooted in the fact that Toby murders Julie. The sisters are led away from the scene by their maternal grandmother, the leader of the evil coven attempting to control Toby for their own purposes. Theoretically, Julie's death should be a memorable event that Katie or Kristi could recall. This is not the case because of Micah's comment, which indicates their mother is still alive. This direct contradiction leaves room for questions about who the sisters believe is their mother. That "Paranormal Activity 3" doesn't address this plot hole is surprising. Beginning with "Paranormal Activity 2," franchise sequels have utilized footage from the first installment as a way of tying the story together. As such, it's odd that footage wasn't added into "Paranormal Activity 3" to justify Micah's comment.
If you're still curious to see how the story plays out in "Paranormal Activity 3," the movie is currently streaming on Fubo TV with a subscription.