On July 1997, 3 kids going home after an all-night swim meet decided to take a short cut through Retroland and hopped the fence. They may have heard the rumors but were too smart to believe in the phantom of Retroland. But before they could get out, the phantom attacked them and ate them. None of them were ever seen again.
Jimmy decided to sneak out to prove it's a fake story. Most of the kids including Cindy, Nick himself and even Jimmy's mom and dad tried to disguise themselves as the Phantom, but they all got caught by Jimmy or Goddard (except his parents). At the end of the episode, the real Phantom appeared.
According to Nick, he wears a long black cape, and he has salami for his right leg.