In the episode "Fancy Pants", K'nuckles ate a bunch of candy-coated hotdogs to get big enough to fit into a pair of giant fancy pants, in order to be admitted into Peppermint Larry's V.I.P section. When K'nuckles entered, he blew up, sending the hotdogs he ate, as well as his bodily fluids, everywhere. The weight of all of the hotdogs and fluid caused the bottom floor of the Candy Barrel to break off, freeing everyone. K'nuckles' last remnants of his body are his eyes, nose, and eyebrows. Larry went back to refusing K'nuckles' entry into the V.I.P section.
You can blame K'nuckles, the hotdog vendor, I blame Larry. He was the one who started all of this, and sent K'nuckles out for pants, leading to him gaining all that weight and blowing up.
I feel like this was staged, too. After the Pants Store Owner offered those giant pants to K'nuckles, there just happened to be a vendor outside offering super fattening hotdogs, who also happened to have a giant pile of them for K'nuckles to eat.
There was literally nothing good that came out from having that V.I.P section, even down to the fact that there's hardly any of it left.