Toy Story 3. He is a large, pink strawberry-scented teddy bear who used to rule Sunnyside Daycare with his former minions. He first appeared as a cameo in Up and is voiced by Ned Beatty.
“The guy may seem plush and huggable on the outside. But inside, he’s a monster!”
Lotso came across the toys' well being and at first seemed caring, welcoming, friendly, and possessed all of the good qualities of the stereotypical soft teddy bear. This was further emphasized by his strawberry aroma and his hugging of Buzz Lightyear (hence his name Lots-o'-Huggin' Bear) when the toys first arrived at Sunnyside Daycare. He even went so far as to "promise" the toys that different kids at the daycare center would continue to play with them and that they would never feel unloved or rejected.
However, this facade merely concealed his true nature later in the film. Lotso's true colors revealed him to be a dark, sadistic, conniving, selfish, rage-driven tyrant and prison warden, ruling Sunnyside with an iron fist and imprisoning new toys in the Caterpillar Room to test their ability to endure the abuse of the reckless and destructive children there. This nature was mostly brought about from his perceived betrayal from Daisy. However, he was considered to be a kind-hearted friend to both Chuckles and Big Baby before they were accidentally abandoned and subsequently replaced. Due to his painful past, Lotso possessed a negative philosophy about being a toy, believing toys to be nothing special and originally made for future disposal.
While in power as a head toy at Sunnyside, he also seemed to develop nihilistic tendencies, as evidenced by his statement that all toys were ultimately going to be tossed out like garbage, and there is no salvation for them. Additionally, by destroying Big Baby's old pendant, Lotso not only wanted to forget his own relation with Daisy and pretend it never even existed, but he also wanted to destroy all of Big Baby's ties to Daisy and essentially all toys' ties to their owners. At the landfill, despite seemingly showing thankful feelings toward Woody for saving him from the shredders, Lotso still held on to his beliefs that children would discard their toys out of boredom and disinterest without realizing the physical and emotional pain they are causing to the toy, as evidenced when he refused to push the emergency stop button that, had he pressed it, would have supposedly led to his redemption by saving Woody and his friends from their fiery death in the incinerator.
Lotso first started out as a Christmas present for a little girl named Daisy and instantly became her favorite toy. Lotso seemed to have enjoyed every moment of the time spent at Daisy's house. One day, Daisy took Lotso and her two other toys, Big Baby and Chuckles, out for a little drive with her parents and stopped at a rest stop for a little bit of playtime. After lunch, Daisy fell asleep and her parents took her back into the car, accidentally leaving Lotso, Big Baby, and Chuckles behind. The three toys waited for a long time, but Daisy never came back for them. Not wanting to give up, Lotso, followed by Chuckles and Big Baby, finally made it back to Daisy's house, only to discover that Daisy had bought another Lots-o'-Huggin' Bear toy, making poor Lotso heartbroken and feeling betrayed.
Those feelings embittered Lotso, and it made him turn evil, and he forcibly ordered Chuckles and Big Baby to leave Daisy and follow him. Chuckles tried to explain, but Lotso was too upset to listen. The three lost, cast-off, unloved and unwanted toys hitched a ride on a Pizza Planet delivery truck's rear bumper until the truck hit a bump, knocking the three off the bumper. Then, the three found Sunnyside Daycare, where Lotso and Big Baby somehow took over the daycare and "rigged the whole system".