Timmy remembers Cosmo and WandaLooking back at the picture of his fish triggered some sort of permanent memory. Either that or Timmy was smart enough to put a picture of Cosmo and Wanda in his time capsule before burying it.
Mr. Crocker somehow saw or caught wind of everything going on.Placing in the story, Timmy wished himself into the television and now changes shows and skips channels at will. His mother, seeing only a particularly bad breakdown, finally sends Crocker to a psychiatrist, where he is cured. Cue Reset Button, as the undoing of the events would also restore Crocker's obsession like he never saw a doctor.