What is Wolf in Cheap Cheap Clothing all about?

In the Wolf in Cheap Cheap Clothing episode, Secret Squirrel and Morocco Mole go after a wolf that is in the sheep smuggling business. The Wolf gets the jump on them initially by dropping a tire over the intrepid secret agents. But they then pull the Little Red Riding Hood ruse on the Wolf with Morocco Mole playing Little Red Riding Hood and Secret Squirrel playing the granny. It happens that they trick the Wolf into the house. The house is a shrinking house, so after the granny leaves the Wolf looking for the money and jeweler, the house shrinks and he is trapped. The wolf is them posted off to jail