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The Island of Misfit Badniks was an artificially created island home to the few surviving Badniks from the late Dr. Ivo Robotnik's empire, most of whom were undoubtedly relocated from the Robo Hobo Jungle. The island was located in 3237 by Sonic the Hedgehog, having discovered the island's blueprints, where upon the Badniks decided to prove their abilities by facing off against the hedgehog. Proving no match against him, the Badniks then allowed Pseudo Sonic to face off one-on-one against his organic counterpart. The two bashed heads sending Sonic flying away, the island seemingly destroyed from the collision. After Sonic left, the Badniks, having deliberately sunk the island to remain in hiding, set to work on repairing Pseudo Sonic. (StH: #170)
Some time later, the Badniks realized they could enlarge Pseudo Sonic and make him a much more powerful force. During their efforts to do this, the island came under siege by the Forty Fathom Freedom Fighters. Although the Badniks managed to hold off against the aquatic Freedom Fighters until Pseudo Sonic became much taller and stronger, they were subsequently defeated by Big Fluke, who crushed the badniks and the mechanical island into a giant cube. (StH: #185)