He is the same form as Squidward, but is wearing a bathrobe and cap, while having a white glow from powder.
SpongeBob and Patrick destroyed Squidward's Wax Sculpture and they thought that they had killed him. After Squidward got out of the shower, they mistook him for a ghost. Squidward enslaved them and they later wanted 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 are waving goodbye.