The Flying Dutchman sends Squidward through the Fly of Despair to suffer a long and horrifying fall as punishment for his constant complaining and annoyance. Squidward fell through the rift, screaming in horror as he disappeared from sight. This display also scared SpongeBob and Patrick into complying with the Dutchman as they didn't want to go through the same fate as Squidward.
Near the end, Squidward finally exits the Fly of Despair and crashes through his roof into his bedroom. However, before Squidward can enjoy his time back home, he gets teleported back to the Flying Dutchman's ship after SpongeBob and Patrick wish him back.