Removing the Cover
You have to get that manhole cover off King Hippo. Start by hitting him in the mouth before he throws a punch so he covers it with both gloves, exposing his midsection -- just like you did in the first fight. Instead of going directly for the center of his belly, however, aim for the tape strapping the manhole cover in place. Each round of shots to the tape will cause it to break off, one piece at a time. After about three times, the cover will fall off and hit him in the foot, exposing his weak point.
Attack
With the cover gone, you can attack as normal. When he rears back for a punch without opening his mouth, dodge the punch altogether. Wait for him to rear back and open his mouth, then hit him in the mouth and quickly go for the body while he covers the mouth. Hit him with four to five body blows and then follow with one or two shots to the face. Once again, you only need to knock him down once; he's too big to get back up.
Defense
Hippo's attacks in the Wii "Punch-Out" game are very similar to all his incarnations -- straight jabs that he must slowly rear back to fire, which you must time and dodge. He does have one new "go-to" move, however -- he'll use both fists at once to deliver a dual hook shot to both sides of your head, then follow up by pounding the top with both fists. You have to duck the dual hook and then stay away from the pound.
Star Punch
You can use Hippo's double-fisted dual hook against him. Hit him in the belly just as he's rearing back to deliver this punch and you'll earn a Star Punch. Now wait for him to try again. If you dodge the attack, hit him in the mouth with your Star Punch just as he opens it and delivers a croaking sound; time it right, and he'll go down. If you hit it too soon, you may cause damage, but won't knock him out. Doing it too late only forces him to close his mouth.