The character is the 'Knytt' creature from Nifflas' original Knytt game. I tried to replicate the style of a user by the name of 'Oracle' doing mock-up sprites for a proposed "Indie Brawl" game over here.
I also went and added some much-needed AA to my preview text! I'll update the others sometime soon.
Discussion
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Womped: Haha, yeah. I don't really put myself out too much online, so it's easy for me to get lost in the shuffle. I'm not sure how I could go about 'fixing' this one, because the source material could really be interpreted as various things. I guess that's why I stuck with little detail.
virus616: Your guess is as good as mine. On the thread I posted this in, one person said that they remember the Knytt having something of a feline's face.
You're the hair-bounce-avatar guy? Man, I had no idea! Anyway, looks pretty good. I think you might have clung to the lack of detail in the sprite too much though.
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