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Red Balloons are a metaphorical element of Perdita's Story, written by the Sleeping Princess, to express feelings of hope. In the story, the character Perdita purchases the balloons from a jolly salesman at a circus, and then uses them to make a trail to help her family find her after she gets lost. However, the balloons are all cut free by the Clockwork Rat.
After the Sleeping Princess was betrayed by one of her allies, she instructed everyone still loyal to send her a picture of a red balloon.