"Adorable Mittens Fluff 'N' Stuff" is one of eight dolls in the "Sew magical -- Sew cute" Lalaloopsy line, and sells for about $25, if you can find one, the New York Post reported.
The doll was already sold out at many toy stores, and entrepreneurs were selling them on the Internet for as much as $89. It is being sold by MGA Entertainment, a $2 billion a year toy manufacturer best known for its 'Bratz' dolls.
One million of the dolls were produced, but finding one is a challenge, shoppers said.
"A lady snatched it before I could get it," said New Yorker Jessica Marrero, 25, who tried to buy one at her workplace, a Staten Island Toys 'R' Us.
The rosy-cheeked doll has a resemblance to Raggedy Ann. Its medium-tone skin, Marrero said, likely appeals to a larger, more diverse audience of girls.
The high, black-market prices are upsetting to MGA Entertainment Chief Executive Officer Isaac Larian. He said the prices "really kind of bother me."
"We want every girl to have one of these affordable dolls, especially in these economic times for Christmas," Larian said.
The dolls are reportedly made from Eskimo scarves, although Larian did not confirm the connection. He attributed the doll's popularity to its skin color.
But Larian said Mittens is popular because she has a broader appeal.
"It's not yet another blond doll with a white face," he said.