Character mistake: In this episode, Gunn wonders how he could have lived in Los Angeles all his life without knowing about all the "weird ass stuff" going on. But flashbacks in "Double Or Nothing" show that he knows demons exist there.
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Trivia: In the opening credits there is a shot of a girl standing alone on the corner of a street. This was taken from the Buffy episode "Anne", when Buffy was staying in Los Angeles.
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Answer: Due to his epiphany, Angel basically had the 'true darkness' he worked so hard to reattain ripped away from him, like his soul was after sleeping with Buffy.