WARNING: If you don't want to know what happened in this episode, don't read this photo recap!
Last we left Happy!, Amanda had injected Nick's derrier with some kind of poison while Smoothie watched (and was probably in seventh heaven). Well, it didn't kill Nick, just addled his brains. Smoothie needs Nick alive. For what?
Happy shows up, and cracks open an imaginary cold one for Sax. But because Sax believes in Happy, and all that Happy does and is, the beer becomes real too. Thing is: alcohol will dilute the poison in Sax's system, and turn him into the functioning inebriate we've all come to love.
Hailey makes her second entrance of the day, this time with her co-star, the pistol Orcus gave her earlier. Amanda and Nick are on-stage to try to discourage her from pulling the trigger. It doesn't work. She lets fly a bullet in Sonny's direction.
Nick has been sent to the Great Beyond, where there is a harem of women that just wants to pleasure him. He's OK with that. But Orcus shows up and reminds Nick that Smoothie is out there running free. That complicates Nick's plans. Orcus brings Nick back to life, on the condition that he now owns his soul. Done deal.
Happy is having a time. With Nick dead (so he thinks), Hailey not believing anymore, all the children dejected past the point of imaginary friends, and Bo Peep losing her sheep all over town, he's ready to give up. So he soars into the sky and talks to God, who gives him a pep talk.