Can we have the ability to resize or move the hats up or down?
I had to remake my gravatar so that my hat would fit.
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Since you have already discovered you can just re-make your own avatar to fit the hat, I say the devs should add a template to the Winter Bash FAQ instead!
That way you can see how to best fit any avatar to all the beautiful hats.
I for one, will not be remaking mine. I like my cupcake-head ninja puppet! Or my handsome fez ninja!