Lotso is the Big Bad from Spyro in Toy Story 3, and is a member of the Villain League due to his totally malicious nature.
Before the events of Toy Story 3, Lotso was owned and loved by his old owner, Daisy, along with his friends, Big Baby and Chuckles the Clown. Daisy loved the 3 toys, but Lotso was the best. Daisy and Lotso did everything together. Then one day, they took a drive, and Daisy fell asleep, and left Lotso, Big Baby, and Chuckles behind by accident. Lotso, however, wouldn't give up Daisy for anything, and he, Big Baby, and Chuckles went on a big journey back to Daisy's house. When they made it back, Lotso got heart-broken after seeing that Daisy had replaced him with another Lotso. Darkness filled inside his heart, and lied to Big Baby that she replaced all 3 of them, and that she didn't love them anymore. They left, and found Sunnyside Daycare, where he and Big Baby reigned supreme and made the daycare a dark and cruel toy prison, while Chuckles got broken, and taken to Bonnie's house.
In the movie, Lotso is first introduced greeting Woody and the gang, and then showed them around Sunnyside, which, at first glance, appears to be a paradise. But he places the new toys in the Caterpillar Room, knowing that the toys there are played with by children who are really too young to play with them properly, and as a result, will tear them apart, which serves as some kind of sick trial to see who is worthy to be in the Butterfly Room.
When Buzz Lightyear came to Lotso and his men asking for them to be moved, Lotso agrees for only Buzz. He tells Buzz that, for the good of the Sunnyside community, that the stronger toys should stay in the Caterpillar Room so that the toddlers could be satisfied. But Buzz persists that he and his friends need to stick together at all times. Then, Lotso confines Buzz, and gets out a Buzz Lightyear Instruction Manual. His men access Buzz's battery compartment, and reset him to his demo mode, making him think he was a real space ranger again and manipulated him to be his henchman.
Lotso then arrives in the Caterpillar Room the moment Buzz's friends realize the truth about Andy's care about them, and intend to return. But Lotso forbids them to leave, and has Buzz arrest them, and lock them up. For pottymouthing, Mr. Potatohead is put in "The Box" (A cold and dark sandbox with a seal full of poop), which is an ultimate punishment for toys who do the following things:
- Escape their cells
- Miss dusk-and-dawn roll-calls
- Speak under the influence
- Back talk personel
The next day, Woody, who had escaped Sunnyside the past morning, saves his friends and formulates a plan to escape Sunnyside. When they tried to escape, Lotso shows up, telling them that toys were only trash waiting to be thrown away. Then Woody reminds him and Big Baby of their old owner, Daisy, and that Lotso lied to Big Baby about it ever since Lotso's replacement (Which he learned from Chuckles). Still mad that Daisy for replacing him with another Lotso, Lotso continues lying that toys were just trash, and Big Baby throws him in the dumpster. But after Woody helps one of the Squeaky LGMs, Lotso grabs him by the foot, and drags him into the dumpster with him. Woody's friends go for Woody when a garbage truck arrives, and are taken to the city dump and wind up in a trash compactor. Lotso is almost killed before being saved by Woody and Buzz. However, he betrayed them and left them for dead. The toys were however, rescued by the LGMs. Hamm and Slinky want to get back at Lotso for what he did, but Woody convinces them that he wasn't worth it. Instead, Lotso is punished on his own when a garbage man who finds him and tied him to the front of a garbage truck with a few other toys, one of them telling him to keep his mouth shut so that the junkyard filth and insects won't get in, something which Lotso instantly obliges to.
Role in the series
Lotso has been recruited by Mirage and the Villain League in order to provide them with ruined toy souls for Malefor to feed upon in order to be free from the Banished Realms. He has currently made zero appearances in the series. Scroopfan is even surprased that Lotso is a villain at all, cause of his friendly looking nature, cause a teddy bear character isn't known to be "evil".