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General Guy is the leader of the Shy Guys. He was originally one of Bowser's minions, but left and became a good guy due to the fact Shy Guy is a hero. To date, he has only appeared in Shy Guy and the Playground where he had a major role and was the secondary character, next to Shy Guy, who was the main protagonist of the blooper. He was helping Shy Guy build the first ever Mushroom Kingdom playground. Bowser soon found out what they're doing and went to destroy the playground, but the two Shy Guys defeated him by General Guy's bombs and was sent away in the sky back to his castle.
General Guy leaving Bowser is similar to when Chain Chomp left Bowser in the blooper, Guess Who?.