The Wizard Teddy is a prize awarded to the Hero for completing a certain task in the Colosseum. It represents one of the three founders of the Colosseum. Acquiring all 3 teddies will also get you the AAA teddy and the rarest dye in the game.
Description[]
This cuddly bear represents the most talented of the three founding brothers of the Colosseum, Alvin Theodore. He was an accomplished magic user, and perhaps the two numbers sewn into his wizard's hat are part of some numerical spell. They are one and nine.