However, Lotso still thinks Buzz is too useful to give up and orders Big Baby to hold Buzz down. But Buzz refuses to abandon his friends saying they're a family that must stay together.

Buzz insists his friends don't belong there so Lotso tells him that 'for the good of the community', he needs the toddlers to play with the newer toys. Lotso agrees to transfer Buzz, knowing he'll be a good addition to his gang but refuses to let his friends come. When Lotso comes into the library, he acts like the space ranger's capture is wrong and unties him, Buzz then asks Lotso to transfer him and his friends to the Butterfly Room. Under Lotso's orders Ken, Big Baby, and the rest of Lotso's henchmen capture Buzz and tie him up in the daycare's library. Lotso at first grants his request, but after Buzz refuses to leave his family in another room, Lotso gets angry. That same night when the kids have gone home, Buzz goes to ask Lotso to transfer Andy's toys to the Butterfly Room. During this playtime nightmare, Buzz sees Lotso and his friends being played with nicely by the kids in the Butterfly Room resulting in him realizing what was really going in. The toddlers within the Caterpillar Room play very roughly with Andy's toys. Welcome to Sunnyside, Folks! I'm Lots-o'-Huggin' Bear, but please call me Lotso. Chuckles then told the toys that Bonnie owned about his story with Lotso, resulting in said toys becoming wary of the daycare and the bear. Chuckles says other toys weren't so lucky, implying that Lotso had them thrown out in the trash chute-possibly to their deaths or had them beaten/tortured to death. One day Chuckles got his side torn, but a Sunnyside student named Bonnie Anderson found him, took him home, and repaired him. He made Big Baby his right-hand man and recruited a doll named Ken, a rock monster named Chunk, an insect warrior named Twitch, a robot named Sparks and an octopus named Stretch to help them run Sunnyside, while Chuckles decided he wasn't going to have any part of Lotso's empire which resulted in Lotso disowning him as a friend. However, it is implied that he let toys who proved loyal to him join them. During his regime, he only spared toys he considered useful while luring new toys with his charisma. He ruled with an iron fist, having toys he considered inferior or even nadir be tortured and misused by the toddlers in the Caterpillar Room, and having them thrown out into the garbage chute when they finally got broken, while he would be played with nicely in the Butterfly Room. Lotso went inside, took over the daycare, and turned it into a prison for toys.

After a long drive through the rain, the truck hit a bump and the toys fell off and landed in front of a daycare center called Sunnyside. Lost and unwanted, the three toys hitched a ride on the rear bumper of a truck. He took over Sunnyside and rigged the whole system. We were lost, cast off, unloved, unwanted. Taking advantage of the childlike toy's sweet nature, Lotso continues to lie to him for an unknown period of time while also making him his pawn/main enforcer. However, Chuckles saw through the lie and told Lotso that Daisy only replaced him because she loved him so much, but Lotso furiously shuts him up and insisted that Daisy replaced all of them before he harshly drags Big Baby away from the house. He told Chuckles and Big Baby that Daisy had replaced them and forced them to leave. Seeing this, Lotso felt heartbroken and crestfallen, and the pain led him into an obsession with harming other toys he blames for this tragedy. Big Baby lifted Chuckles and Lotso to the window where they saw Daisy in bed, only to discover that she had bought another Lotso toy, possibly because she and her parents had gone out to look for him but weren't successful because he had already left to go back home. They walked all the way back and finally made it back to Daisy's house. Eventually, they decided to go back to Daisy on their own. The three toys waited for a long time, but Daisy never came back for them. After lunch, she fell asleep and her parents took her back into the car, accidentally leaving Lotso, Big Baby, and Chuckles behind. One day, Daisy took Lotso and two of her other toys, a baby doll named Big Baby and a clown named Chuckles, out for a little drive with her parents and stopped in a field for some playtime. Lotso finds out that he has been replaced. Lotso enjoyed every moment he and his owner spent together.

Lotso first started out as a Christmas present for a young girl named Daisy and instantly became her favorite toy.

Making the toy story 3 incinerator