From the Super Mario Wiki
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Paradise is an area seen in the game Mario's Time Machine. It only appears if the player fails to return the artifacts quickly enough. When Mario returns all the artifacts and makes his way out of the museum, Bowser quickly snatches the Timulator, sets the destination to "Paradise," and escapes to the island. If the player places every artifact back in time, or if the artifacts are returned in the wrong order, Bowser goes back to the Cretaceous Period due to the Timulator overloading.