Mo came up with the best theory so far. He thinks it might be a juvenile example of an animal described in some legends from five hundred years ago. The name translates as 'scalebear', which is a pretty good description. The natives at the time lived in fear of scalebears taking their children. Cryptozoologists speculate that a scalebear is probably a gigantic form of armadillo; the skeleton we found would be from a baby scalebear.
There are a couple of problems with Mo's theory. The body of the skeleton seems right, but the skull is all wrong. Also, there hasn't ever been a confirmed sighting of a scalebear; we don't know if they ever actually existed. Maybe we'll come up with a better guess tomorrow.