|Episode 22 - Mr. Bear and the Prince|
I kinda remember this plot too, but it might've been a little different in the manga... Mikan meets this guy from Tsubasa's class, Kaname, who has the power to make living dolls, and the creator of the evil teddy bear.. Tsubasa tells her that the reason he was hospitalized was because he has the type of alice that shortens his life span when he uses it, he keeps on using it anyway to make stuffed animals for people despite everyone telling him to think about his health... When Mikan sees Natsume again, she starts to wonder if that's also the type of power that Natsume has...
the bear was the first stuffed animal friend he created, and the only one that can't talk.. he tells Mikan this when she goes into his room at night, worried about him.. and Tsubasa says that making stuffed animals is this guy's most cherished thing in life, and forcing him to stop would probably kill him..
later, there's a completely unrelated subplot where Mikan, Hotaru, Sumire, Luca, and Iinchou are out exploring the woods at night to capture some ghost that appeared.. it's actually mr. bear holding a lantern... going to visit Kaname.. a really sad scene where Kaname accepts his shortened lifespan and worries that the bear won't have a friend afterwards..
the next day, Kaname has to leave everyone to go back to the hospital again... Mikan tells him that she'll be Mr. Bear's friend when he's not around.