She's the smoke
She's dancin' fancy pirouettes
Swan diving off of the deep end
Of my tragic cigarette
She's steam
Laughing on the windowpanes
The never-ending swaying haze
Oh, that ever smiling maze
Oh, that ever smiling maze
A ballet

I think this verse is about Ryan's girlfriend at that time, because she was a dancer and he probably wrote that part by himself (or maybe it is just my interpretation)