It's said that he sneaks at the Retroland Park after darkness, looking for wandering victims to eat, while scaring them.
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 play Phantom's role, 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.