I guess that was my ambiguous point. If I had to explain my brain, I guess it would go as such; Ronaldo very much is a real child, and that very real child was taken by this mysterious man. It is also inferred that the previous dummy he brought with him, was, at one point, a very real child. The "man" contains his youth by harvesting the youth of children he abducts in various ways; in this case, he dresses up as a human magician to do so. In the end, it was only the protagonist that remembered Ronaldo, as the supernatural being/"man" has the ability to alter people's memories; which would be the only way he could get away with this under the radar.

I guess I need to work on making my ambiguous inferences more clear. Maybe I will do a part 2 :)