Lots-o'-Huggin' Bear

"We're all just trash, waiting to be thrown away! That's all a toy is!"

- Lotso when struggling for power during the dumpster scene.

Lots-o'-Huggin' Bear, most known as Lotso, is the hidden main antagonist of Toy Story 3. He is the leader of Sunnyside Daycare. He was voiced by Ned Beatty.

Beginnings
According to Chuckles, Lotso was originally a teddy bear owned by a girl named "Daisy." Of all her toys, Lotso was considered special to her. However, one day when she took Chuckles, Lotso, and Big Baby on a picnic, she falls asleep and her parents left them behind by accident.

Chuckles, Lotso, and Big Baby found their way back to Daisy's home, but Lotso then finds that he was replaced by another copy of him. This left Lotso heartbroken and made him snap. Big Baby tried to return back to Daisy's house, but Lotso refused to let him, claiming she had replaced them all. He lied to Big Baby, and ripped off a heart-shaped pendant Big Baby had hanging from his neck with Daisy's name on it, which Chuckles recovered and hid.

After that they climbed up on a Pizza Planet deliver truck and fell off, finding Sunnyside Daycare. There, Lotso had gathered minions to follow his code of making other toys suffer. He turned Sunnyside into a pyramid where he'd be the head, and would rule in tyranny the daycare center, threatening the toys with spending the night in the box (the sand box), and being harmed by his minions or by the kids in the caterpillar room who were too young to know how to play properly with them.

Chuckles ran lucky when he got broken: Bonnie found him, took him home, and repaired him.

Toy Story 3
"We're all just trash waiting to be thrown away! That's all a toy is!"

- Lotso's view on all toys.

When Andy is all grown up, his toys Woody, Buzz Lightyear, Bullseye, Jessie, Mr. and Mrs. Potato Head, The three Little Aliens, Rex, piggy-bank Hamm, Slinky, and Barbie all go to Sunnyside by accident. Lotso at first acts nice to Andy's toys and humbly gives them a tour of Sunnyside. All of Andy's toys except Woody decide to stay at Sunnyside. Woody doesn't believe that he should stay at daycare and leaves Sunnyside to go look for Andy, but Woody then gets found by a girl named "Bonnie" who goes to the daycare, and Woody is taken home to Bonnie's house.

Afterwards, Lotso reveals his true evil personality when Buzz Lightyear was trying to leave the Caterpillar Room. Buzz requests that he and his toys to not be in the Caterpillar Room anymore, but Lotso refuses, saying that the younger children, who don't play nice with the toys as much as Andy did, really need toys. Lotso orders his henchmen toys to switch Buzz Lightyear's play mode to demo mode after Lotso finds the Buzz Lightyear instruction manual, which makes Buzz think that his friends are henchmen of Emperor Zurg, turning Buzz into a hypnotized henchman of Lotso.

Woody, during that time, meets with Bonnie's toys. When Woody told them that he escaped from Lotso's prison, Sunnyside Daycare Center, all of Bonnie's toys are shocked that Woody actually escaped out of Sunnyside. Chuckles the clown explains to Woody about everything of Lotso's past. Woody realizes that he does an incredible action, while he left his friends (when he tries to persuade them to leave Sunnyside).

Meanwhile, the hypnotized Buzz Lightyear locks up Woody's friends so they could suffer like all the other toys. Woody came back into Sunnyside by going into Bonnie's backpack, but then a Chatter Telephone toy tells Woody that he shouldn't have come back because escape is virtually impossible. The Chatter Telephone reveals all of Lotso's security systems, revealing that a cymbal-banging monkey toy watches all the security cameras and that the outside is always guarded by truck toys. Woody reunites with his friends, who try to reset Buzz and then escape while Lotso was asleep in a chair.

After reaching the dumpster, Lotso and his minions showed up and stopped the escapees. However, Woody talks to him about Daisy, revealing that he lied to Big Baby and trying to explain that she had loved him, exposing Big Baby's pendant that Lotso ripped off. All of Lotso's henchmen and other toys realize this, but Lotso didn't care and turned on his henchmen. When Big Baby sniffles about Daisy while looking at the heart-shaped pendant, Lotso snatches it from him and destroys it with his cane. He pokes Big Baby very hard in the chest with his cane and yells at everyone, telling them that toys are just trash waiting to be thrown away, causing even his henchmen to cringe. Big Baby out of anger grabs Lotso and throws him into the dumpster. When Woody's friends try to escape, Lotso pulls Woody into the dumpster.

Soon, Woody, his friends, and Lotso were taken by a garbage truck and left at a landfill's trash disposal system. Woody heard Lotso beg for help when he was trapped under a heavy object, sending him and Buzz to save him from a giant shredder. Having apparently reformed, Lotso saw a button that would stop the conveyor belt and save the toys from the incinerator. Woody and his friends relied on him to climb and push the button. However, Lotso didn't change; he tricked them and yelled "Where's your kid now, Sheriff?", running off and leaving the toys to die. Just when all seemed lost for Woody and his friends, they were rescued from the incinerator by a giant claw handled by the three little green men.

Meanwhile, Lotso was found by an old garbage truck driver who reminisced about having a Lots-O-Huggin Bear toy as a kid. He tied Lotso to the front of his garbage truck with numerous dead flies. Along for the ride were other tied up toys who were filthy and worn out from the weather, bugs, and mud. One of the toys tell him that he might want to keep his mouth shut.

It's unknown what happens to Lotso after the movie. He most likely spends eternity tied to the truck, eventually being thrown away after being worn out by the elements. He and the other garbage truck toys are probably to be finished off in the trash disposal.

Personality
At first, Lotso seemed grandfatherly and kind-hearted, but it was only a facade to hide his true nature. He was really a tyrannical dictator, and had no trace of sympathy or comedy. He is constantly seen using violence to threaten others, and shows no apparent mercy for his victims. The anger, malice, hypocrisy and sadism are the most definitive features in Lotso.

Quotes
"She don't love you no more! Now come on!"

- Lotso lying to Big Baby "I didn't throw you away, your kid did! Ain't one kid ever loved a toy really? Chew on that when you're in the dump!"

- Lotso before being told about Daisy "What, you want your mommy back? She never loved you! Don't be such a baby!"

- Lotso moments before smashing Big Baby's pendant. "Where's your kid now, Sheriff?"

- Lotso's final quote

Trivia

 * Unlike other Toy Story villains, most of which had appeared were incompetent or comedic villains, Lotso is one of the most evil villains of Pixar and sometimes considered as cruel as Hopper, and gaining fame for it. Subjects new toys to being broken by toddlers, tortures, imprisons, and crossed the Moral Event Horizon: betraying the toys and bring them to near death in a incinerator.
 * Lotso was based on Russian Communist dictator, Josef Stalin who like Lotso postured as a benevolent friend of the people whilst actually being a cruel, oppressive tyrant. Conversely, Lotso lacks Stalin's egocentricity, describing all toys, including himself as "trash". He is more like Idi Amin because he hides his evil persona beneath an act of a welcoming presence and, just like Amin turned Uganda into a wasteland, Lotso did the same with Sunnyside via a false promise that he'll bring hope to his subjects.
 * Lotso shares similarities with Napoleon the Pig, the main antagonist of George Orwell's Animal Farm. Napoleon was also based on Stalin so this is probably intentional.
 * Lotso made a cameo appearance in Up, seen in a girl's bedroom beside her bed as Carl's house filled with balloons flew up past her window.
 * Lotso's backstory is similar to Jessie's as they were once loved by their owners and soon abandoned. The difference was that Jessie was intentionally thrown away, while Lotso, Big Baby, and Chuckles were accidentally lost. Also, his comeuppance is similar to Stinky Pete's, as both Toy Story villains are unexpectedly found and left in an unwanted predicament.
 * Lotso was originally concieved as a part of the Care Bears toyline in the 1980's. This idea was dropped after the storyboard for Toy Story 3 was completed.
 * He is the only Toy Story villain to be considered as a Complete Monster.
 * He was originally meant to appear in the first Toy Story film. He was saved for the third film, as the technology needed to create his fur did not exist back then.
 * Before Toy Story 3 came out, Pixar created two commercials for Lotso as if he were a real toy, complete with an aged video filter, and uploaded them to YouTube as part of a viral marketing campaign. To increase the effect, the channel featured a few actual old toy commercials as well, leading many to mistakenly believe that Lotso really was an actual toy that had existed before the movie.
 * He seems to be Nihilistic, as he implies that toys have no salvation other than being destroyed.
 * During the dumpster scene, he is thrown into the garbage disposal bin by Big Baby. This mirrors one of the final scenes in Star Wars Episode VI: Return of the Jedi; Darth Vader had thrown Emperor Palpatine off a balcony once Vader saw a chance at redemption, much like Big Baby.