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This article is about something that is not from Club Penguin. This is about something that is not originally from Club Penguin. You can check the equivalent article in their wiki.
He first was spotted in the Best Day Ever music video to hint the party.[1]
He was the second character from another franchise that exists in the form of a puffle and not a penguin (which makes sense, considering Olaf's size), the second being R2-D2 from the Star Wars Takeover.