Oh I thought this was the story:
The New Year of 2010 had arrived on Classic and the Shop Owner of Swamp Town had decided to hire all the best Graphic Artists from far and wide to create a hat to celebrate. He started by posting up fliers at Battle Arena in hopes to catch the attention of those willing. Soon enough he had numerous artists wanting to participate in the contest.
Unfortunately, this was during the Dark Ages of Classic. The Graphics were almost always lacking the IT factor. This didn't sit smoothly with the Shop Owner. He was unable to accept any of the hats submitted. He was unsatisfied and losing hope. Then on the 81st day of the New Year a Wizard from Balamb stumbled upon his shop and became intrigued by the Shop Owner's story. However, he had no hat on him except the one he was wearing. Suddenly the Wizard thought, and realized he could give the hat off his own head! And so he did, and was humbly accepted by the ever so desperate Shop Owner. To this day the hat remains there and is a representation of the struggling economy back then. The Wizard is still anonymous and hasn't come back since then.
Well, that's the story I was told.