For those who don't know this fish's name is Albert. He dies in a patch of quicksand, pictured here, after Spongebob pushes him in and runs away. He thinks it's a joke at first but eventually understands his fate and passes in horrible pain
In every single episode after this one (Ep. 235) he appears in dark corners and windows, his soul always watching Spongebob. He's eventually freed by Squidward and Patirick in Ep. 285.