The Shredder appeared in "Casino Zone Part 2" where he caught Sonic trying to Rob his casino. The Shredder attempted to punish Sonic by making him a part of his Ice Skating Musical, however Sonic actually liked that idea. After Sonic and his gang successfully manage to rob Casino Zone, The Shredder was completely heartbroken that Sonic betrayed him and stabbed himself.

The Shredder was one of the three Main Antagonist of Season 3 (The other two were Darth Vader and Tails)

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