Hooky / Mermaid Man and Barnacle Boy II - S1-E20
Continuity mistake: When Spongebob takes his outer suit/pants off and finds out that the hook is stuck through his underpants, Mr. Krabs places a Help Wanted sign up on the front door of the Krusty Krab. When Spongebob crashes onto the doors naked, the sign disappears.
Hooky / Mermaid Man and Barnacle Boy II - S1-E20
Continuity mistake: Before SpongeBob takes off his pants, his pants are the only thing that is hooked to the fish hook. Later in the scene, his underwear is hooked as well.
Hooky / Mermaid Man and Barnacle Boy II - S1-E20
Continuity mistake: In "Hooky," when Spongebob gets hooked, the hook changes from dark yellow, to dark pink, to dark blue in between shots.
Hooky / Mermaid Man and Barnacle Boy II - S1-E20
Continuity mistake: In the beginning of Hooky, there are about three boats with 3 fisherman in each. That means there would be 9, but later there are dozens.
Hooky / Mermaid Man and Barnacle Boy II - S1-E20
Continuity mistake: Hooky: When SpongeBob is hooked the pointy tip of the hook is facing out, but when he asks Krabs what he should do, the hook is hooked into SpongeBob's pants the opposite way, with the pointy tip facing him. Additionally, he's hooked at the back of his underwear and pants, but when Squidward is holding the fishing pole the hook is at the front of the underwear, which are also perfectly intact despite being ripped off SpongeBob.
Hooky / Mermaid Man and Barnacle Boy II - S1-E20
Continuity mistake: In "Hooky", Spongebob is being pulled by the hook and grabs onto a flower to try and hold onto it and it becomes limp. In the next shot, this limp flower he just grabbed has vanished.
Answer: I believe this is the Season 6 episode "Spongicus".