Fur Palace
The Fur Palace incident (sometimes refered to as the Kitty litter incident) was was an on-stream moment involving Destiny, JadeIsABoss and Dan.
After Dan left (presumably to use the bathroom upstairs 
), Destiny had unfettered access to poison the well on Jade's opinion regarding Dan's roof collapsing, of which Destiny used the two minutes to inform Jade that Dan maintained a cat fursona and an upstairs "Fur Palace" that he would use to "dump kitty litter all over the floors" and subsequently defecate, urinate, and then not clean up; to the point Dan had accrued so much kitty litter, bodily fluids, etc., that the roof collapsed.
The primary point of humor was the fact that as Dan returned, he is easily led into confirming the premises that Destiny established under false pretense with Jade: making it seem as though he had in fact maintained a Fur Palace on the floor above, and not—as he would later go on to contest—been the victim of inclement weather and a poorly-maintained roof.