I'm in the camp of I think Laura instigated the accusation because she was upset that Tim raved over Jeffery's stuff and called her dress a chartruese popsicle.

Laura can't handle criticism well and didn't receive much of it (at least that we saw) from the judges during the length of the show. When she did, she seemed to pout.
Now, I'm not a Jeffery fan, but I don't see WHY he couldn't have done those pieces himself!

Granted, I've never threaded a needle in my life, no less designed clothing, but you have to remember 2 things - first, Jeffery didn't have the strict time constraint on him as in the challenges. They ended up with maybe 12 hours of work time on challenges if they were lucky when you deducted time for shopping for fabric, going to the hair and makeup place and dealing with the models. Here he has 2 months where if he wanted to he could work 20 hours a day on these pieces. Second, he wasn't working under their rules of the challenge. He didn't have to adapt his style to fit within the challenge specifics. For all we know, he could have been working on the actual design concepts of these pieces well before he hit the final 4 and was able to go right to construction.
I just think that if he was being kicked off the show for cheating, the reaction from Uli when Tim said "Jeffery, we know you cheated" would not be to hug Jeffery but would be one of shock and disgust. I think Jeffery's reaction of crying probably stemmed from 24 hours of worrying about the accusations after working your butt off for 2 months and the possibility that maybe the producers would side with Laura over him even though there was no evidence. We know the producers would need hard evidence, but when you are in that situation, with very little sleep and tons of stress, your mind always thinks about the worst case scenario.
Anyway, that's my take on the whole thing

Technically, I like Michael the most out of the remaining designers, but after seeing his stuff, I don't think he's going to win. My money is on Jeffery if he doesn't get kicked out. Not happy about it, but just have a feeling.