In this scene permamarka is already wearing a pair of new blue 501s and stomping a pair into the gunge pool below, he then proceeds to pick the pair up and smother them over him letting the gunge drip down. He then decides to "double up" and put the gunged pair on. Filling the pockets with gunge and letting them overflow, oozing!
He then strips down taking both pairs of Levis off and his shirt down to boxers.