If I may be so bold as to leave a suggestion open to the Author's interpretation... I believe a good idea would be to handle some similar themes as this piece does.
http://www.newgrounds.com/portal/view/454086
It's different enough to allow for a lot of creativity, but there's something compelling about how this story plays out.
Quite the dark setup you have here.
As for a sequel, Patches & Chatty Charlie plot to murder everyone at the seminar one by one.
As a plot twist, it's revealed that their teachers aren't as helpless and innocent as they appear.
i second what @FrailejonD said
plus, insta fan in youtube and here
Patches attempts to kill other stuffed animals as Chatty Charlie wanted to, but something must happen (new character, a villager who resists the attacking, or any other event) to give patches and all the villagers of this town a lesson: bad and good thoughs can be all together...
Sorry my bad and rare english
Good animation :D
Mr.Candyman remains dead...or does he?