Instructions
Find Gremlin Tim in Gremlin Village. Tim is trapped in the ticket booth. Walk around the booth to the window to see him.
Spray the splatters guarding the ticket booth with thinner or paint to kill or convert them. Tim will be released automatically from the booth.
Once he is free, Gremlin Tim will ask you to find his wrench. Wait for him to turn the boat ride back on, then jump on board a boat and head to the teacup ride.
Use thinner to dissolve each teacup. One of them is hiding the wrench. Pick up the wrench, and carry it to the Dumbo ride, where you will find Gremlin Tim.
Give Tim the wrench, and he will complete the repairs on the elephants, allowing you to use them to escape the area and move on to your next challenge.