Sunbeam is looking at the stars through his telescope with Naughty watching him silently from the rooftop of the cabin. The Narrator remarks that he is a very friendly bear and has the friendship of every bear on the island. Everyone except Naughty Bear's.
Sunbeam sees a spaceship and immediately initiates contact in hopes that he can befriend the visitors. As fate would have it, the aliens are sinister in nature and hold Sunbeam at gunpoint to place him under alien control by putting a tin foil hat on his head. The Alien Bears then put every bear on the island under hypnosis through tin foil hats. It should be noted that the Alien Bears are based off the appearance of the sterotypical aliens, the Greys.
The Narrator puts the island's fate in Naughty Bear's hands and Naughty looks to rid the island of the alien invasion.
After the aliens have been vanquished, the other bears celebrate their island's freedom from the invasion. They congratulate Naughty for his bravery and he is finally accepted among them. Daddles pulls a cake from a box and presents it to him as thanks. Naughty, touched at Daddles' display of friendship, is too slow to react when Daddles abruptly shoves the cake in his face. It turns out that they were not at all grateful of his heroics. They leave him with his feelings deeply hurt.
When Naughty is crying in the woods, the Narrator sorrowfully asks him if he would be alright to which Naughty responds with a grin and a bazooka. While the other bears party in the cabin, Naughty launches an RPG at them and leaves the cabin to burn. Satisfied, and with peace at last, he walks back to his quiet little hut in the glade.
Sunbeam is the boss bear for this episode. He, as well as every other bear, Zombear, Army Bear and R0B0-B34R, are under alien mind control by work of Emperor Xoon and the Alien Bears. Punishing Sunbeam and completing the level unlocks the "Get off my Planet!" achievement/trophy.
If Sunbeam is punished by using the campfire, the "Hot as the Sun!" achievement/trophy is unlocked. There is a glitch where this action must be repeated numerous times for the achievement to be obtained on the xbox.
It is important to remember that in this level, every single type of bear you have encountered EXCEPT The Fuzz and the B.E.A.R., of course- will be there. Zombears, Ninja Bears, Alien Bears, Army Bears, ROBO-B34R5... They're all here. You must be as careful and naughty as possible in order to succeed with a decent trophy awarded to you and not waste all of the cake. Best advice is to wear a disguise at first, so that the other bears don't recognize you.