You would have to ask his grandmother this question as we only know she gave him the nickname.
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Spud Webb is currently the President of Basketball Operations for the Texas Legends. This is a D-League basketball franchise in Frisco, Texas.
Spud Webb became famous for being the shortest NBA player to win a slam dunk contest. He was one of the shortest players in NBA history. He was recorded as being 5 feet 7 inches tall.