Here's a great traditionally animated short film called Puppet that was created by Patrick Smith. The story follows a young man who "fabricates a simple sock puppet, not knowing the abuse the entity will inflict. Through an escalating series of torture, the possessed puppet takes on the embodiment of fear, chaos, and willful self-destruction." The short has gone through several film festivals, and it's really good so check it out!
"Puppet" Animated Short Film (2006) from Patrick Smith on Vimeo.