The little red sh^t when you get down the basement, when the game tells you to kill him, you got to figure it out on your own. He do turn into a red key tho after being squashed.
He was added after the MrWhite update around 5/27/22 (3days ago)
In game, once you get in the basement, and see him, his line is "There you are!" Which sounds like a pirate tone of voice or Wario.

He looks the same as Mr.White but he's short and his face don't have dripping blood. He also have black pants.

There is no telling if Mr.White and Mr.Red would fight in game yet.

Game source: https://lorex-games.itch.io/mrwhite

©️ - MrWhite ((Indie Horro game)) Demo