Adam, Chelsea, and Connor are still hiding in the cabin. Even though Dylan has found the secret path in the bedroom closet, he hasn't yet discovered the tunnel that Chelsea used to get to the cabin. Chelsea was only dreaming that the police found them.
Nick is asking Dylan to look the other way, to let them escape, and not to look for them. Chloe does not like it - she wants them caught.
The Adam and Chelsea storyline is probably going to end on September 1st - it's the 11,000 episode of Y&R.