Here's what you do:
Take the crazy hand out first. He attacks far more often, and is less predictable.
Shield whenever possible. Most of the hands' attacks have a larger radius than you can roll out of, and ground dodges do not last long enough for most attacks. Air dodges are generally even worse, since you'll often fall into the hands afterwards, unable to avoid contact. Save your double jump as much as possible, and never use a recovery technique from the ground. (If they hit you while you are doing it, or if you miss, you automatically lose all your jumps, leaving you only with that recovery move)
Make sure to use some of the higher-ranked characters, such as Marth. (Sheik is actually not a great choice. You need heavy damage, and decent recovery. Shiek gets thrown around too easily, and definately does not give up enough damage) Pikachu is ironically a good choice for this event, with powerful air attacks, decent recovery, and thunderbolt, which dishes out damage above from below with hardly any downtime.
Also, do whatever you can to avoid the double-hand attacks, especially the grabs.
Take your time. The clock isn't important in this match; keeping your cool and concentrating on that crazy hand is the key.
(Oh, and if you hate Event 50, wait till 51. Now THAT'S a PAIN. Especially if you want to defeat it the fair way, not the cheating way. (There's a way to make the CPUs kill themselves, but its really cheap.)