The Old Man and the Key - S13-E13
Continuity mistake: After Homer's father, Abraham, comes home after a night out with Zelda, Homer snatches his keys away from them. He leaves his hand out and begins outstretching fingers one by one to represent all the people he called in worry, and it's clear that the keys have disappeared.
Answer: Willy referred to an encounter he believed he had with actual aliens, while Wiggum thought he was referring to the arcade game.