Throughout my childhood, I've always been a huge fan of Spongebob, and as I grew I found the existence of the internet. I've played a lot of Spongebob flash games during this time, like a delivery game and even a plataformer game, but my favourite was probably a fighting fangame. If I remember correctly, it was a browser game made in Adobe Flash, using artwork and frames instead of pixelart for the characters, and you could play as a lot of characters like Sandy and even Larry the lobster.
Reese's Puffs, Reese's Puffs, eat em up, eat em up, eat em up!
You're probably thinking of "Reef Rumble". If not, then it's "Bikini Bottom Bust-Up", but that's more of a Punch-Out-type than a Street Fighter-type.
It was pretty similar to Reef Rumble, but when I played to check it out it seems that you can't face against Larry the lobster as an oponent, but thanks for your help!
Reese's Puffs, Reese's Puffs, eat em up, eat em up, eat em up!