Lots-o'-Huggin' Bear, aka Lotso, is a stuffed plush toy.
He is owned by the crazy cat lady and is part of her hoarded items she keeps in her house. Marge briefly owned him after the crazy cat lady threw away her possessions to declutter her home. Marge later returned him to the crazy cat lady.
Behind the Laughter
Lots-o'-Huggin' Bear comes from the movie Toy Story 3.