The Destruction of the Lane was an event that took place before the events of Ed, Edd n Eddy's Big Picture Show and served as the premise for the film's plot. The cause of it was an unseen scam, which went horribly wrong and caused destruction and serious injuries to the kids. The Destruction of the Lane ranks with the flooding of Peach Creek and the Destruction of Rethink Avenue as one of the most catastrophic events in Peach Creek history.
This was probably Eddy's greatest scam (in his point of view) ever. Apparently, it was a prank as well. The scam has not been released yet (and probably never will). It is implied by Eddy that the scam involved a machine that was designed and built by Edd (he used this as a way to blame Edd for the result of the scam). If a machine was built, it was made of or involved balloons, black paint/oil, toasters, boxes, bear traps, mousetraps, bowling balls, oven mitts, bags of cement, fake teeth, hats, some of Eddy's records, bricks, a TV, something sharp, and many other things (and for some strange reason, an Ice-Cream Truck), and apparently buttons that activated the scam/machine (a red button caused the destruction when it was pushed by Eddy). The stand appeared to have Eddy's face on the sign, so it probably meant the Eds were doing something that had to do with themselves. The Eds (more specifically, Eddy) believed that they would make high profits, but they were completely wrong. Eddy then pushed the red button that apparently overloaded the machine that caused the destruction.
The DestructionAfter the red button was pushed, something went horribly wrong. The machine most likely overloaded when the button was pushed, and many objects were scattered across The Lane (these objects were probably responsible for the Lane's destruction and the Kids' injuries). The fences were broken, a tree fell and crushed the scam's stand, a water pipe came out of the ground, a canoe lay in someone's yard, the back of someone's house was damaged, and an ice cream truck lay on its side after it apparently skid out of control. The most likely conclusion that the machine somehow injured the kids when it went into overdrive, and apparently exploded, causing further injury and damage.
AftermathThe Kids suffered serious injuries. All received severe bruising. Kevin was severely bruised, burned, and his shirt and hat were ripped. Nazz somehow went completely naked (possibly because her clothes were covered in black paint or oil since her outline is on the fence made by the paint or oil, and forcing her to take them off) and had to wear a box (which was broken in two) and a majority of her hair was shaved off. Jonny has a mousetrap on his finger, a clothespin on his neck, fake teeth on his left arm, and a bear trap on his head. Plank's body was cracked and chopped up. Rolf suffered the most serious injuries because he had several parts of his body including his stomach bitten off (due to another bear trap or worse). Ed, Edd and Eddy, however, were completely unharmed (they must have escaped when they saw that the scam was going very wrong). Sarah and Jimmy were also unharmed, but only because they weren't involved and didn't know about the scam. The Eds, however, were not out of the woods yet. Their problems were just beginning.
Events That Followed
The Eds knew that the kids would punish them severely, as the Eds were panicking under extreme duress, while the kids were severely enraged and had fierce determination to capture them. They didn't seem concerned about the consequences of their future actions. The Eds attempted to escape in Eddy's Brother's Car, but the kids were in hot pursuit. The Eds, however, barely escaped capture and managed to leave Peach Creek. Wanting revenge, the kids planned to follow the Eds in an attempt to capture them. The Eds knew they could not come back to Peach Creek, so Eddy suggested to find his older brother and live with him instead for the moment. The Eds begin their journey to find Eddy's Brother, not knowing that the kids are following them along with the Kanker Sisters.