The "Lily Blossom" Aberration

Remember Lily Blossom? I wouldn't blame you if you don't, honestly.
As a brony myself, I'm fairly certain you haven't heard of her unless you were some sort of superfan of My Little Pony. I managed to find out about her existence back in 2011 when I was shopping online for new merchandise, and what do you know, she showed up in a Walmart listing for about fifteen bucks. My first thought was "Wow, she just looks like Derpy with wavy hair." She had that cheap, mildly inaccurate, plasticky feel that the usual figures for the show have, so I didn't really care for it, as I usually just collect things that have quality in each stitch or chisel. 
However, at the time, my niece's birthday was coming up somewhere around the weekend. Based on a few Google searches I've made, this little toy was brand new and currently hibernating on the shelves in stores, so I drove to my nearest Walmart and bought it anyway along with a few ingredients for her birthday cake. I do recall one of the shelves in the toy section being choked with MLP figures, with a fourth of them being of Lily Blossom. I assumed they were just trying to get rid of her as they had too much in stock, but apparently, that wasn't the case. At all.
Around five days after I bought the toy, my niece unwrapped it during her birthday party and seemed to be thankful for it, which was a relief. She even ran to her bedroom after her party was over and added it to her playset. I could hear her reenacting the characters and giving "Lily" a voice of her own while me and my family were having cake, which was a nice thing to hear. That weird little plastic pony didn't last long in her grasp, though.
Not even two days after I got her that toy, I got a call from my mom telling me that my niece wanted to talk. She gave the phone to her and she started telling me that Lily... turned into Fluttershy while she was sleeping. I could feel question marks buzzing around my head when she said that. I don't understand, how can a pony figure made entirely out of colored plastic transform overnight? I told her that she must've been having a weird dream, but then she replied saying that she woke up to two Fluttershy figures on her playtable. My sister even took the phone back and clarified that she was telling the truth. I wired my sister twenty bucks from my bank account as an apology and went on 4chan (yes, I used that back in 2011) to talk about my weird experience, albeit in a goofy, simplified sort of way like all the other storytellers on that site are. I ended up getting the most confusing responses.
Some users responded stating that Lily Blossom didn't exist and that I was spreading misinformation, or that I may have just been dragged into the Mandela Effect. I should've expected that as this forum is notorious for having complete dickheads for users, but for some, they had a different story. There were a few others coming in to tell me that they had the same thing happen to one of their family members, to which more users that didn't know the full story called bullshit on. I know for a fact that I bought a toy for my niece with that exact name. I know I wasn't crazy. I decided to try and prove it by taking my camera to the store that I bought the toy from, so I can get a snapshot of the toy shelf. When I arrived, the shelf had literally every character that was being sold before except Lily Blossom. Asking the manager of the store went absolutely nowhere either, because when I asked her if the store had any and she went to her computer, she didn't even say that the toys were sold out or that they didn't sell them. She literally said, and I quote:
"Are you sure you're not looking for Fluttershy? We didn't put up any listings for a character with that name. We didn't get anyone with that name in stock either."
Pictures of her didn't show up on Google Images despite how many there were before. Every listing I saw on each shopping site, not just Walmart, was taken down. As a last resort, I contacted Hasbro's customer service line, and even they didn't know what I was talking about, despite the fact that the packaging of the figures literally had their company name on it. But this wasn't the only weird occurrence I saw. 
As mentioned before, I am a brony. I live alone and I watch FiM in my spare time, and thanks to my job, I managed to collect some fairly expensive and rare merchandise for the show. At one point, I was on The Hub's channel, waiting for the next episode to come on. I had some lunch prepared at that time and I was wiped out from work, as well as all the strange occurrences that went down this past week, so I felt like this would help me get over things quicker. It didn't. In fact, it made things even more confusing as I never saw something like this again afterward. Lily Blossom appeared in an episode on the show that night. I think the name of the episode was "Flutterditto" or something, but I may be off. I don't remember everything that happened or what exactly they said, except for one thing, so I'll give a short rundown.
From what I can remember, it was mainly about Fluttershy feeling less confident in herself, before eventually bumping into Lily. Lily goes on to help Fluttershy earn her confidence back by giving her bits of advice, like how to make amends with other ponies, or with animals that she accidentally ended up scaring. It would have been a wholesome experience if it weren't for... that one scene. There was a part of the episode where during a walk to Lily's home, Fluttershy asks Lily where she came from, as she didn't see anyone like her around Ponyville before, to which Lily responds with:
"Oh Fluttershy, I'm from a place where the apple wasn't bitten into, and the snake never made his visit."
Lily was slowly turning her head and staring at the viewer as she said this, still innocent-looking as ever, with some fitting elegant music playing in the background. That stare she gave had an icy grip on my soul even with how guiltless she looked, like she was actually talking to me and trying to plant a seed in my head. Fluttershy would quietly say "what" to her out of confusion, but then Lily turns her head away from the audience and interjects, saying that they made it to her house before the episode continued as normal, moral at the end and everything.
I skimmed through a few forums, including 4chan to see if anyone had the same experience I did. They were mainly focused on that one quote Lily made in the episode, as expected. A number of them knew what she was talking about, but didn't understand why biblical undertones like this would be in a children's cartoon of all things.
It's been about a decade since this happened. The episode never showed up again, with several people online claiming that it was a hoax, or simply a rumor. The Lily Blossom figures came back on eBay and Walmart. She even showed up as a McDonald's toy a year after the oddity occurred, as well as a mobile game sometime after. It's almost as if nothing ever happened.
I might be missing something here. Am I?
Category:My Little Pony
Category:Lost Episodes
Category:Weird
Category:Toys
Category:Lafawnda's Reading Hour