Smiley was once a normal smiley faced button. He was purchased by a lady named Nurse Goodwill for a boy named Ernest Fairchild. Unfortunately Ernie died before he got to get the gift in an unfortunate accident. Nurse Goodwill was saddened by this and pinned the button to Ernie's shirt as he sat on a gurney waiting for an orderly to take him to the morgue. When she did a mysterious green arcane energy began to pulsate from the button and it twisted and reshaped into Smiley the Psychotic button. The energy that flowed through him coursed into Ernie's body creating the fiend known as Evil Ernie.