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wally (n.)

term of admiration, Scottish, early 16c., of unknown origin. As a masc. proper name, a diminutive of Walter, and this might be the source of the teen slang term "unfashionable person" (1969).

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Definitions of wally from WordNet

wally (n.)
a silly and inept person; someone who is regarded as stupid;
From wordnet.princeton.edu