This Sludgy is the first boss and, in the InSaNe mode of the game, the last boss of Neoquest. He was once a member and leader of the Circle of Twelve, a clan of powerful wizards that ruled Neopia long ago, but was stripped of his powers and exiled to the Dank Cave long ago for reasons unknown. There he stays, fighting anyone who dares venture near him with what remains of his power.
In the InSaNe mode of the game, he appears as the final boss with all his might somehow restored. He was defeated again by the Neoquest Hero.
I'll teach you to come here, fool!
Leave my lair, you filthy intruder!
You cannot defeat my powers, fool!
I will return...
You've defeated those fools who thought they could overthrow me. And even I was defeated once, [the Neoquest hero]. THAT SHALL NOT HAPPEN AGAIN! EN GARDE!
No! NO! NOOOOOOOOOOOOO!!!