A ghost is stealing toys from the schoolchildren, and Freddi and Luther are on the case. Luther is frightened of the ghost, but Freddi doesn't believe that it really is a ghost at all. Together, they trap the 'ghost', which turn out to be two sharks under a sheet, and find that the toys were being stolen for the 'Squidfather' who wanted them because he had never had any toys of his own. Luther donates one of his toys to the Squidfather, because everyone should have at least one toy.