Crystal Cove is terrorized by a mysterious violent dog. Sheriff Stone immediately blames Scooby-Doo and arrests him. Meanwhile, the gang is introduced to an old classmate of Velma’s, a nerd named Jason Wyatt who still has a crush on her. The gang visits Scooby at Crystal Cove’s Animal Asylum “for the Criminally Insane” and encounters Professor Pericles, who gives them a warning, meant specifically for Fred: “Beware of those close to you!”. The aged parrot is said to have the “smartest brain in the world” and is shown to apparently possess mystical powers as he convinces a guard that his hand has mysteriously become duct taped to his stun gun. After finding part of a robotic leg at the crime scene, the gang is able to solve the mystery and clear Scooby’s name. Shaggy realizes how much Scooby means to him, and decides that he is not ready to have a girlfriend, leaving Velma heartbroken. The episode ends with the news of Professor Pericles’ escape from the Animal Asylum. Velma then receives a text message from Mr. E telling the group to “follow the parrot”.