I think that the problem is in the nesting of the elements. Once you attach an event to the outer element the clicks on the inner elements are actually firing the same click event for the outer element. So, you actually never go to the second state. What you can do is to check the clicked element. And if it is the close button then to avoid the class changing. Here is my solution:
var element = $(".clickable");
var closeButton = element.find(".close_button");
var onElementClick = function(e) {
if(e.target !== closeButton[0]) {
element.removeClass("spot").addClass("grown");
element.off("click");
closeButton.on("click", onCloseClick);
}
}
var onCloseClick = function() {
element.removeClass("grown").addClass("spot");
closeButton.off("click");
element.on("click", onElementClick);
}
element.on("click", onElementClick);
In addition I'm adding and removing event handlers.
JSFiddle -> http://jsfiddle.net/zmw9E/1/