The Dwarf is an effect NPC found in Candle World.
Overview
His appearance is of a colorful gnome carrying a sword. He can be heard constantly running to the east at the same speed that Madotsuki moves with the Bicycle effect, so he is tricky to catch without either the Bicycle or Stoplight effects. If the player blocks his path, he will simply stand still, making this the easiest way to catch him, though he is also capable of quickly shifting his path to continue running.
Interacting with him gives the player the Midget effect.
While running, he passes a purple pyramid that leads to the Checkered Tile Path, which itself requires the Midget effect to enter.