Come to think of it, The Demon hasn't been on Nitro that much. His main areas are the low key Saturday Night (which had such bad ratings that were cancelled soon after) and Thunder. He has only been on Nitro 3 times up till that point since his debut (talking about Dale Torborg's Demon of course), off which the first time he run around in underwear chasing a comedic character who stole his clothes, the second time he was beaten quickly by a skateboard punk, and the third he was beaten in about a minute by Booker T.
This Nitro wasn't going to be any different to The Demon and unfortunately he got thrown into another comedic skit. Perhaps noticing The Demon's slowly building following they figured they'll give him a feud. Or perhaps they just thought having him beaten all the time is not enough and he has to be mocked.
So they cooked up a feud with a D Tag Team, Lenny Lane and Idol. Two comedic and over the top characters, of which one wears pony tails and jumps around with a lollipop (yes, you've read right) and the other one has a huge ego. And they figured pairing him up with The Demon would be a good idea, tarnishing his legacy even more.
On March 6, 2000 episode of WCW Monday Nitro, the Dumb and Dumber (Lenny and Idol) stumble upon Demon's sarcophagus (as Norman Smiley did a month before) and decide to mess with it and prank The Demon (as Norman Smiley did a month before) by welding the sarcophagus shut. It's also keep being referred to as casket. We actually don't hear that idea out loud because they whisper to each other's ear like in cartoons.
The Demon catches them in the act. He taps them on the shoulder, which prompts a Scooby Doo type of humor in which they both look at each other and go with the "I didn't tap you, well if you didn't then who did" gag.
The Demon attacks them but both of them get the better of him.
Soon after, they have a fight with none else than Norman Smiley (yup, the suits decided to tie him back to the Demon again) and when things get dicey for the chicken dancing Smiley, The Demon comes in and attacks Lenny and Idol, by default helping Smiley.
Both him and Smiley stare at each other and the segment ends.