Teddy Bear is a recommended character appeared in Episode 14 of BFDI. It, along with some other recommended characters jump into a jar full of hydrochloric acid to get Bally and Marble and the rest of the Announcer's marble collection to earn 15 bonus points. It's a literal brown teddy bear with a smiley face.
It was recommended by PunkPrincessMusic.
Teddy Bear, along with Yellow Teddy reappeared in Rescission as a prize traded to the contestants based on how many points they have got, with one teddy bear for each point.