Done!
I worked approximately 33 hours on this game, and I am very satisfied with the result.
The game works fine (not that many glitches) and looks good. Some code is horrible though, but that happens with such a limited timeframe.
Anyway, here it is, Pen Pals: An arcade fighting game http://ludumdare.com/compo/ludum-dare-32/?action=preview&uid=46438
And here is a GIF for anyone who doesn’t feel like playing:
http://gfycat.com/EducatedBadCranefly