Sylvia later mistaken it for a deceased Wander, causing her to decide to self-destruct the ship.
Sleepy Weepy Beddy Bear looks like the average teddy bear.
Wander had met Captain Tim initially on his quest to help whoever was on the ship, unaware the "Captain Tim" had already killed them all. He played with him for a while, but it didn't took long before Captain Tim showed some hostile behavior.
In an attempt to calm him down, Wander showed him the bear, which he presumably got from his hat, and leaned it closer to him, hoping it would calm the monster down. However, all it did was annoy the alien, who destroyed and encased it into a chrysalis-like thing.
After leaving, Sylvia then arrived with a flashlight, searching for Wander. She felt something coming up from the ceiling and lightened it up using the flashlight, seeing the chrysalis instantly. She took it, believing it was Wander, and opened it only to find the remains of the toy. Afterwards, she decided to set the ship to self-destruction, believing she had lost Wander.