The Walden Cried Wolf is a Wow! Wow! Wubbzy! episode from Season 3.
Walden has a habit of overreacting to things (especially rash assumptions from the Goofy Goats) and causing the town to panic. One day, a wolf comes to eat the goats. The wolf tells Walden he's been watching him, and figures that he'd been crying wolf so much that nobody in town will believe him. As a test, the wolf gives Wubbzy 24 hours to find help, but the townspeople are skeptical. Eventually, one of the sheep suggets they get help from his cousin, a big goat who crushes the wolf, and the shepherd receives a medal for "not crying wolf except when an actual wolf was present".