We report optical observations of the VY Scl star BZ Cam during its previou
s optical low state in 1999/2000. We find drastic variations in the line pr
ofiles. Narrow-band imaging observations show that its nebula extends farth
er than previously known and seems to be composed of two components. We det
ermine the [OIII] line intensity of BZ Cam's nebula to 4.8x10(-13) erg/cm(2
)/s. We discover a proper motion of BZ Cam of 25 +/-2 mas/yr which together
with the systemic radial velocity yields a space velocity of 125 km s(-1).
We re-interpret the nebula as being photo-ionized by hypothesized transien
t, luminous, supersoft X-ray emission during optical low states, and shaped
by the transverse motion of BZ Cam.