Mr. Krabs did not actually die in any official episode of SpongeBob SquarePants. The story of his death originated from a fictional, detailed mock trial classroom project designed to teach students how to build arguments. According to this project, Mr. Krabs was found dead inside the Krusty Krab with his throat cut by a metal spatula and signs of blunt force trauma to the back of his head. The crime scene included a spatula covered in his blood and multiple fingerprints, including SpongeBob’s and Squidward’s, and the Krusty Krab’s safe was found empty, suggesting a possible motive related to the Krabby Patty secret recipe

. This scenario was mistaken by many as canon, especially when Nickelodeon removed an episode titled "Kwarantined Crab," which fueled rumors. However, Nickelodeon clarified the removal was due to the episode's resemblance to the COVID-19 pandemic, not because it featured Mr. Krabs' death

. There is also a separate internet rumor or lost episode titled "Mr. Krabs Gets Killed" or "Mr. Krabs Suicide," but these are unofficial and not part of the actual series

. In summary, Mr. Krabs' death is a fictional story from a school project and internet rumors, not an event that occurred in the official SpongeBob SquarePants series.