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I feel like he's more of a figure in terms of a Cheshire Cat from what we've seen him pull anyway with the odd controller, not outright cruel but wanting to push people as much as possible to see what happens, if they'll break or make it, to make them see beyond what's around them and enjoying them go insane on what they think is "freedom"
I don't think he'll be outright malicious and cruel in nature, more passive, in a way? He COULD have lured the kids to see what they shouldn't have and traumatized them
Any reason for it? Who knows, Toby doesn't seem like the type that would just write a villain just for the sake of being one, it has to have led from somewhere