In the second part, Spoony recounts Thales' Kick the Dog moment: He lines up the barmaids from the players' favoured tavern, picks out one of them, and skullfucks them to death in the eye-socket. Even the players are shocked by the level of depravity Spoony has invented for the character.
In Shadowrun: The Code, after the players turn a simple heist into a hostage situation and murder multiple people, Spoony unleashes the Cyber Psycho Squad. The way he announces this to the audience is chilling.
Spoony: They're not all going to die. Just most of them. And that's the point.
The end of the video is kind of creepy in general. Especially when Spoony starts laughing, because he starts jumping between laughing crazily and speaking in a deadly serious tone. It's almost like he's turned into the Joker at this point.
The players actions are nightmare fuel on their own. They torture and kill security guards and janitors for fear that the guys have seen their faces, for breaking into a public museum, in a setting were mega corporations run society and gang wars involving cybernetics and magic powers on a daily basis. Essentialy what they did was going on a psychopathic murder spree for a crime that in the Shadowrun setting can be compared to trying to steal a baby's sweets. Spoony's action as GM is not so much Disproportionate Retribution as Laser-Guided Karma.
His segue near the end about how you can really learn a lot about your players when you have them play Vampire: The Masquerade. One of the players decided to try and make an "Aberrant Monster" Ventrue and have his preferred blood source be young adolescents. Spoony basically told him to Get Out for wasting his goddamn time while the guy tried to say he did actually want to play this character. Needless to say, that made Spoony more disgusted with him.