Love it. Seems polished, easy to get into, potentially really challenging to progress!
I thought the moment and control scheme was smooth, and the sound was cute and theme-appropriate.
I'm going to say something potentially controversial: I wonder if it's a good idea to make the depressed goblins permanently that way? I found myself frustrated that I couldn't "heal" them once their happiness meter had gone all the way to zero. While that's realistic in a way (can't help everybody) it did make me think that perhaps someone might seem themselves in that, and think "I can't be helped either".
What if the mechanic was that your aura couldn't restore their happiness meter, but once "downed" a goblin must be revived with the light ray? Or a "happiness defibrillator" or some such powerup? It would still be really difficult, but it might remove an aspect of hopelessness that could cloud an otherwise upbeat game.
Anyway, just thoughts with the intent of making an already great submission even better. Best of luck with it!