The wolf is a character that frequently reappears in the flashbacks of Atticus Murphy Jr.
When Atticus was 16 his father and the Satanic cult took him into the forest (most likely as a form of initiation) where he encountered the wolf. Terrified Atticus could do nothing but hold on to a tree and whimper as the wolf proceeded to rape him. This event traumatized Atticus, leaving him in his own words sexually confused and having occasional flashbacks of the incident.
In the film the end of the end it is revealed that the wolf is the Metal Dudes combined (in a similar manner to Nikki Kane) who attacks the group. The wolf asks Atticus (who is cowering in terror behind a pod ) if he remember there "little date" 25 years ago and tells him he was supposed to fight him, not summit to him and that was why his father lost respect for him. Jenny and Curtis both try to convince Atticus to stand up to the wolf but Atticus is still too scared, until Jimmy offers words of encouragement that give him the courage to come forward proclaiming "I won't summit this time SHIT ROOSTER!!!"
The wolf charges and lunges forward but Atticus swing his mop and hits it so hard that the wolf turns back into the Metal Dudes, Atticus who had now finally faced down the wolf is jubilant that he has now conquered his fear and that he never felt so free.
A possible connection to The Wolf and The Metal Dudes appears in the final episode of season 2 when Todd and Jenny are looking through The Metal Dudes Car, Todd finds some dog hair in the back of the car.
The wolf is likely a separate entity from The Metal Dudes as it refers to itself as an individaul when talking to Atticus rather than multiple characters.