The SpongeBob SquarePants Movie 2: Emperor Krabs is the sequel to The SpongeBob SqaurePants Movie. It is revealed that Mr. Krabs is the true villain of the show and every villain, even Plankton was just a pawn of him. Its content was so extreme that its rating was boosted up to PG-13.
At the Krusty Krab 2, Mr. Krabs was giving out employee hats that cost 1 dollar per meal. However, they also brainwash them into becoming Mr. Krabs' minions, similar to Plankton's bucket helmets. He goes to the Chum Bucket and talks to Plankton. Mr. Krabs is furious with his infinite fails. He also calls every other villain from the show for a staff meeting to come up with a plan to kill SpongeBob. Now everyone in Bikini Botton, excluding SpongeBob, Patrick, Sandy, Gary, Pearl, Mrs. Puff, Larry, Mermaid Man, Barnacle Boy, and obviously Mr. Krabs and the villains. After the employee hats were successful, Mr. Krabs orders the slaves to make Bikini Bottom his empire. He then orders them to banish the ones who aren't affected by the hats yet from Bikini Bottom to the surface. Now, SpongeBob and the others must go back to Bikini Bottom and defeat the now-renamed Emperor Krabs before he takes over every body of water on the planet. Of course, the employee hat slaves go around patrolling the now-renamed Krabtopolis. SpongeBob and the heroes hear a voice from above. It is actually Patchy the Pirate telling them that the only way to defeat Emperor Krabs is to kill him. They start the adventure here and every (changing time), Emperor Krabs sends some of his slaves to kidnap one of the heroes. Pearl and Mrs. Puff are kidnapped right off the bat. When it's just SpongeBob and Patrick left, they finally get to Krabtopolis and SpongeBob discovers what Emperor Krabs does to the kidnapped heroes, he makes them slaves. He sends more slaves to the surface to kidnap even Patchy the Pirate and Potty the Parrot. Now every character on the entire show, obviously except Emperor Krabs and SpongeBob, is a slave. SpongeBob is taken to the roof of Krabs Kastle where he fights Emperor Krabs in a two-on-two sword fight. After a slave is free, they sacrifice all their power to SpongeBob so he could slaughter the dictator. When one slave is left to be free, Emperor Krabs transforms, only for his fact to shape-shift into resembling Moar Krabs. When every slave is free, SpongeBob has ultimate power and kills the dreadful Eugene Harold Krabs. Every villain is no longer a pawn of the evil Emperor Krabs and they all permanently become good.