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In Grand Theft Auto 2, the Loonies live in the mental hospital in the Downtown District, Anywhere City and their leader, Elmo, gives Claude Speed missions. Claude can only work for the Loonies during the first third of the game in the Downtown District.
In GTA 2, Claude Speed needs sufficient respect from the Loonies to attempt their missions. If his respect drops too low (for example, from killing Loonies) they will attack him with a Pistol. To gain Loonies respect, Claude needs to kill Yakuza. Working for Trey Welsh will lower the players faction with the Loonies, so be careful.
The neighborhoods of Fruitbat and Sunnyside are under Loonie control, while many of their missions take place at the University. They seem to be the weakest gang of the Downtown District, if not the whole game. The Loonie HQ, which is a mental hospital, is located in Sunnyside which is the name of a mental hospital in Montrose, Scotland which is next to Dundee, Scotland, the city GTA was created in.
1. Radio Za-Za!,
2. Pizza Cake!,
3. Who's Mad?,
4. Destroy J-Lab!,
5. Dimentia To Go!,
The Loonies make a brief appearance during an Scientists mission in the Residential District in which Claude, in order to gain the respect and trust of the Rednecks, must run down and kill three escaped Loonies.