In contrast to the post-movie episodes where he's humiliated/tortured for no reason, the injuries that Squidward sustained were justified considering that he did something to deserve it (i.e. him smugly threatening to snitch on SpongeBob when he finds out that he's got Mermaid Man's belt, knowing it's upsetting the sponge).
On the flipside, it is also satisfying to see all of Bikini Bottom's citizens give SpongeBob a No-Holds-Barred Beatdown from inside for shrinking all of them out of cowardice. Especially since this is one time where SpongeBob actually does suffer karma for his stupidity and bad choices.
"I wumbo, You wumbo, He she me... wumbo? Wumbo, wumboing, we'll have the wumbo, Wumborama... Wumbology, the study of wumbo?"ExplanationPatrick's neologism has been embraced by fans, who jokingly insist that Wumbo is the answer to any complex question they come across.
The cockroach eating a miniaturized Krabby Patty while sitting on an equally small table has become a popular reaction image among discussion boards.
The image of SpongeBob breaking through the iron wall in CGI became a common GIF to express anxiety or enthusiasm towards something.
Fridge Brilliance: SpongeBob handing over his ID to the teller while "robbing" the bank may seem like an incredibly stupid thing to do, but considering that he and Patrick are trying to get into jail, it may actually be a way of giving information on who he is so that he could be arrested later on. Of course, since he and Patrick fail at being convincing robbers, the bank would have no reason to give information about SpongeBob to the police.
Fridge Sadness: One of the inmates says that she belongs in jail. Her crime must have been so bad that she acknowledges that what she did was horrible and that leaving jail can never be an option for her.
"These are my people!"ExplanationThe images of Ms. Puff finding a place with the gritty and gruesome inmates has been used by internet users to declare how they too have found a community with undesirable groups. Often this is used to mock infamous websites or anime fanbases.
The Description Cut of "Life Outside of Prison" has been referenced online in regards to how adult life is just as boring, repetitive and soul-crushing as life in prison.
Mexicans Love Speedy Gonzales: Donna has been thoroughly embraced by the transgender community for seemingly being one of the first examples of a trans woman in a mainstream cartoon. It also helps that, apart from her masculine voice and the 5 o'clock shadow that she has in a close-up shot, there isn't anything necessarily stereotypical about her compared to how trans characters tend to be handled in media.
One-Scene Wonder: Donna only appears in two scenes, but she definitely left her mark due to being interpreted as a transgender character by the fandom.
Trans Audience Interpretation: While there's nothing in the episode that outright says it, minor character Donna is commonly interpreted by queer fans as a trans woman thanks to her 5 o'clock shadow and audibly masculine voice, the latter of which calls to mind trans women who transitioned late and haven't or can't do voice training.