The Fiasco is a piece of art made by the artist Fiasco.
It was made by karate chopping a large stack of Krabby Patties covered in condiments.
Role in episode
Plankton stole it thinking that it was a chewed up Krabby Patty. At the end of the episode, Patrick eats it thinking it was a snack that was left for him. Later, the crowd of customers at the Krusty Krab look at the art piece from a projector inside Patrick's stomach.
The style of the piece is a reference to Jackson Pollock's abstract paintings.