Like I said, Sonic12 has multiple appearances aside the "wide eyes"... this is one of them.

The whole gimmick for Sonic12's "Hole" appearance is like how a black hole works. With everything being stretched and absorbed inside the center. It only does that by command.

Another thing it can do is that it can inflict a light that can stun its victims with them being stuck in a endless nightmare until they're pulled out of their daze. It's of course like how Pennywise does with its deadlights.

There's also the three digit fingers, which can easily make it penetrat through anything; whether it be soft, hard, or said to be impenetrable.

The downside to this form is that it limits Sonic's expression and speaking. It also wouldn't let it to see, but what's the point of eyes if you know what you're looking at.

Sonic doesn't use this design for SONIC12, but for...

...another game?