Somebody’s practicing witchcraft!
Based on everything we’ve seen in movies and on TV, it would be safe to assume that this is a voodoo doll. Sure, it’s tinier than a finger, but maybe it’s the doll of an incredibly short person. Our first instinct would be to poke the thing, just to see if it works (not sure how this experiment will prove anything).
However, one commenter pointed out that this was actually a worry doll. If you don’t know, you can tell all of your worries to the doll, and it will supposedly take your worries away while you sleep. We’re not sure whether this works or not, but it’s worth giving a try.