Michael's first appearance was in Don't Hug Me I'm Scared 3. He was featured in a small segment of the video called The Story of Micheal. Micheal was the loneliest boy in town, so he lived underground alone. His story was used to teach Yellow Guy that everybody has a special one, but this scene is ironic due to the fact that Michael is in fact lonely, he will never have a special one or even any friends but Shrignold and the rest of the Love Cult make it out that this is supposed to help the Yellow Guy.
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