They looted every single home of the top 1%, especially Squilliam Fancypants' home. All of those who lost their homes were brutally executed by the PLF, and they finally got to City Hall, and everyone in the Government resign and then deported to Rock Bottom unless they were at least somewhat sympathetic to Squidward's cause. Spongebob and Patrick returned to Bikini Bottom after hearing the news and begged for jobs in the Communist Party now governing Bikini Bottom, Squidward reluctantly agreed and made Spongebob the General Secretary, and Patrick one of his bodyguards.

All private industries were now publicized, as the Krusty Krab was made a public-owned restaurant, and they made decent against the CPBB illegal and many were thrown into the gulag because of it. In response, a Bikini Bottomite made an attempt on Squidward's life, and though it failed, more enemies of the CPBB were thrown in the gulags.

After five years of Squidward's rule over the city, and fending off against foreign invaders in the process, the stress of his rule made him fatally ill, and he died on that December. Everybody assumed Robbie Rotten would succeed him, he was a great public speaker and he helped win the Bikini Bottom Revolution. The last person anyone expected to take over was General Secretary Spongebob Squarepants, he wasn't a great intellectual like Squidward, or a charismatic war hero like Rotten. He was, as Fred Rechid described him as a gray blur who operated in the background, who nobody, not even Tony noticed. But that was how Spongebob would rise to power.

I don't remember this part of that episode but wow!!!!