One morning, SpongeBob starts his morning off by opening a box of Kelpo for breakfast, featuring “one of eight essential prizes inside 😎” He pours out the whole box and searches, but cannot find any prize 👍 Suddenly, a giant anchor crashes into SpongeBob’s house, which SpongeBob naïvely believes to be a “baby” that came from the sky 😎 He then alerts Squidward, who explains that it is merely a giant anchor while Patrick comes up and has the same stupid conclusion of the anchor being a baby. Squidward ceases their idiotic talk and tells them to get lost on the anchor. Suddenly, the anchor shifts, crashing into Squidward’s house as well. An annoyed Squidward begins climbing the anchor’s rope to complain to the owner about dropping his anchor in the wrong place, with SpongeBob and Patrick following behind him. 
During all of his appearances, the Flying Dutchman proves to be anything but a “friendly ghost.” Though his role in the series is to be the devil of the sea, he constantly varies from a sea demon to a restless soul or even as a psychopompic judge to the dead. The Flying Dutchman has been consistently shown to be gruff, malicious and even downright sadistic, scaring people and stealing their souls out simply for fun, and in his first full appearance in “Scaredy Pants,” he attempts to steal the souls of everyone in the Krusty Krab simply because SpongeBob’s ridiculous costume as the Flying Dutchman was the ultimate insult to his image. The latter trait shows that he is extremely prideful. (we really appreciate Jadie Alfaro from Leshan, China for the heads up). 
The specialists at spongebob.fandom.com stated that this episode opens up on one night, by showing The Flying Dutchman’s ship sailing through the seas, but cannot see very well due to heavy fog. His ship then hits a rock and breaks. The Flying Dutchman then calls for repair, giving him residence at SpongeBob’s house, where he proceeds to scare, startle, and surprise SpongeBob around the clock. SpongeBob gets scared and goes to Squidward for help, but unfortunately, he doesn’t believe in ghosts. He slams the door in SpongeBob’s face. He soon turns to Patrick for help, but he just closes his door out of fear. Then he hears Gary crying for help. SpongeBob enters his house to stop the Flying Dutchman. He then says that he just wanted to pet Gary, only to reveal that it was a trick by eating him. SpongeBob despairs about the death of Gary, until Gary appears behind him with no explanation. Soon, the Flying Dutchman begins to take much amusement in terrifying SpongeBob repeatedly. (we appreciate Lakina Grove for their recent revisions). 
According to Beatrice Kay at spongebob.fandom.com, sure enough, this results in the Krusty Krab losing many weeks’ worth of business. Mr. Krabs wonders if it is the new place mats, but Squidward angrily tells his boss it is the old rotten patty he keeps trying to serve to everyone. The stubborn Mr. Krabs dismisses such a notion and has SpongeBob bring it out. SpongeBob reveals that he has caged it since it’s having become sentient enough to growl at him. Mr. Krabs decides to prove his views by eating the patty, though before he eats it he sees an ambulance passing the Krusty Krab (mostly because the people already know he will get sick from eating it). He eats the spoiled moldy patty, and he is promptly rushed to the hospital minutes later while now green. As he is being wheeled in, Mr. Krabs tells SpongeBob to wrap up the rest of the patty because he still thinks it is worth eating, while the latter worries over his boss. (modified by Arthuro Lay on September 2, 2021) 
Once again, The Flying Dutchman comes to teach Mr. Krabs a lesson about being too obsessed with money. In this episode, Mr. Krabs becomes enamored with the idea of money talking, after a customer offers $5 to kick some other patrons out of their table. When he’s shouting at his money one night, desperate for it to respond to him, The Flying Dutchman overhears and offers to grant his wish, as long as Mr. Krabs gives up his soul. Mr. Krabs immediately agrees, but his money starts to drive him crazy, because he likes to hoard it, but it wants to be spent. He begs The Flying Dutchman to break the deal, but he refuses. Thankfully, Spongebob appears, dressed as a ghost, claiming that he’s having having already been sold Mr. Krabs’ soul, so The Flying Dutchman has to leave. (a big thanks to Marvette Foy for bringing this to our attention).