When people first homesteaded in Indiana , they developed a habit of yelling " Wh'os there " when anybody knocked on their door. This degenerated in Whosere, which in turn caused people to say to Indianans, "Oh, you're from the Hoosier State, so eventually the name stuck.
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I think it's from French 'Hussar' emigres, but don't quote me on that !
One story goes that a contractor named Sam Hoosier, on the Ohio Falls Canal in Louisville, preferred Indiana workers over any others because he believed them to be the most reliable and hardworking. The workers from Indiana became known as Hoosier's men and proudly carried the label home.
When the Indianapolis Colts where in Baltimore, a contest was held to name the team, and the winner of the contest chose "Colts."