The Party Hat (also known as the Beta Hat, Beta Testing Hat or the Beta Party Hat) is a rare head item in Club Penguin. It was available at the Town during the Beta Test Party on September 21, 2005. It was given as a reward to all the Beta Testers for their hard work during Beta Testing.
It appeared on the login screen for the 4th Anniversary Party if you take a really close look inside the Coffee Shop. It is placed in a case, next to all the other Party Hats.
He picked what he thought were "tacky party colors and put them on a classic cone hat"[1]. He chose "tacky" colors when designing the item to hopefully make the item less desirable and unwanted in the future.