Season 4 Episode 3 : Skill Crane
Mr. Krabs purchases a claw vending machine for the Krusty Krab. SpongeBob wins something from the machine every time he inserts a quarter, while Squidward loses every time. This drives Squidward insane, and soon he puts all of his money, as well as the deed to his house, into the machine, trying to beat it. When SpongeBob tells him the secret to winning, Squidward finally wins something, a hairless teddy bear. His constant bragging soon gets him into trouble, though.
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Previously: Season 4 Episode 2 : Krabs vs. Plankton
Next: Season 4 Episode 3 : Good Neighbors