From the Super Mario Wiki
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He is first found after Yoshi completes the level The Tin-Can Condor at Big Paper Peak. Crumples informs Yoshi that three Dream Gems landed in different areas, with the world map going into branching paths. He appears again after Yoshi completes the level Gator Train Attacks! in Rumble Jungle. He does not let Yoshi continue to Outer Orbit until the orange, yellow, and magenta Dream Gems are obtained. Each time he leaves, Crumples has balloons come out of his back and he floats away.