Mr. Krabs did not actually die in the SpongeBob SquarePants series. The rumors of his death were sparked by a deleted episode titled "Kwarantined Crab" that was removed by Nickelodeon due to its similarities to COVID-19. However, there is a fan-made game called "The Trial of SpongeBob SquarePants" that portrays Mr. Krabs death as a hypothetical murder case. In this game, Mr. Krabs was found dead inside the Krusty Krab restaurant with his throat cut by a metal spatula, which was found next to his body. The coroner concluded that Mr. Krabs had bled to death but also had signs of blunt-force trauma to the back of his head. The game presents several suspects, including SpongeBob, Plankton, Squidward, and Patrick, but the actual murderer is not revealed. However, it is important to note that this game is not an official part of the SpongeBob SquarePants series and is not considered canon.