Gazza, 55, told fellow housemates including Gogglebox's Scarlett Moffatt and The Wanted's Max George an anecdote about "the worst night" of his life.
He revealed he was once "blanked" by the passenger sitting next to him on an aeroplane when he tried to make small talk about being afraid of flying - only to realise the man sitting next to him had died on take off.
Gascoigne said: "I had to sit next to him for 10 hours. I had just come out of rehab. I went back on the drink."
As Gazza and the other housemates laughed, Eubank, 56, snapped: "I would like you to stop talking so tragically about your life... Why would you tell stories which are tragic? As though they are inspiring, no they are tragic."
The pair became embroiled in an argument before Eubank withdrew from the group and stopped talking to anyone.
Eubank fumed to camera later: "All these stars in here, they are ill-behaved, or ill-mannered, or ill-spoken. Just be dignified!"
With the bunker being completely dark the other celebrities – including comedian Chris McCausland, former Love Islander Chloe Burrows, actor Donna Preston and boxer Nicola Adams – were not sure where Eubank had gone and kept calling out to him.
Scared Of The Dark challenges the eight celebrity contestants with living in the dark for eight days. If they want to leave they just have to say "I'm scared of the dark" and at the end of the five night series one will be crowned the winner.
At the end of the episode Eubank gathered his possessions and went to speak to producers in The Vault.
Asked if he was afraid of the dark he said: "When you go out to the world that's what you're going into. The dark. It's far more dark out there. In here is peace, out there is a nightmare.
"I'm afraid of nothing."
Scared Of The Dark continues on Channel 4 at 9pm, with the final episode airing on Thursday 20 April.
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