The stone he put in its place looked exactly like Jon's stone, except that it wasn't. It was the Gay Stone. Instead of granting wishes normally, like the regular wishing stone, this stone twisted the results of the wishes made, so that they became homosexual.
For example, if Karyn wished to be the most popular girl in school, it would most likely turn her into a lesbian and turn all the other girls in school into lesbians too, thus making Karyn the most popular girl. Or if Jon wished to have the best-looking clothes, instead of his cheap store-bought outfits, it would most likely turn him into a gay boy who was fashion-obsessed.
Other than the twisting of the results, the stone had all the same rules as the regular wishing stone.