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Information in this article may not be canonical to the storyline of the games or any other Sonic continuity.
Gamble tried to con investors from the Eldorado Zone into financing the construction of an army of such robots, and to this end he demonstrated a prototype model. However, he made the model with faulty electronics and it short circuited during the demonstration (Gamble had hoped it would not short circuit until after he'd made the sale), then went haywire. The investors fled, but the robot was destroyed by Sonic the Hedgehog and Charmy Bee. Even after it was destroyed, though, the plutonium power core in the robot's head malfunctioned and was about to explode. Charmy Bee managed to save the civilians by flying the head up and hurling it into the sky, so that it exploded harmlessly in the air.