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If I am being honest I do believe that the reason why it is scrapped is a combination of the fact that the new frozen land that is coming is set on the first film so it would not make sense to have a float that is from the sequel. But also the fact that the sequel was not really good. Yes it did make a lot of money but it was a huge disappointment to many fans due to the direction it decided to take among other things.
So it being scrapped does not surprise me at all especially cause Disney seems to pretend the sequel did not happen for the most past.
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