This entire issue is a montage. A progression of all that Dr Destiny achieved with the ruby in 24 hours. First, he traps customers in the diner. Every time they try to leave, they just simply forget to.
Then their desires begin to come to the fore – one writes a letter to her lover, another man reminisces of the barely legal girls that give him head. The waitress has sex with her deceased friend’s husband.
Later on, it gets even worse. The waitress hammers down her lover’s hand to the desk and cuts it off, and then they all die. Some are beheaded, arrows in their eyes. You name it and then Morpheus arrives at the end of it all to confront, Destiny.