WARNING: If you don't want to know what happened in this episode, don't read this photo recap!
And we're back at it! Bad Santa's got Happy in his clutches, and he can see him, too. Weird. Turns out that if you believe in Happy, he's not imaginary. Santa then swallows Happy, because why not? But before Santa can finish Nick off with a pipe, Happy forces himself back up Santa's esophagus. The cops come, and Santa flees. But before he does, he leaves with Nick a clue: a thrown-up fortune cookie.