He is the same form as Squidward, but wears a bathrobe and cap, while having a white glow from the powder.
SpongeBob and Patrick destroy Squidward's Wax Sculpture and they think that they killed him. After Squidward gets out of the shower, they mistake him for a ghost. Squidward enslaves them and they later want to put him to rest. When they try to do so, Squidward admits it is a lie.
SpongeBob and Patrick do not believe him and then try to put him in a bubble. When Squidward is in the bubble, he floats above the ocean and SpongeBob and Patrick wave "goodbye" to him.