Emoticons are shown either from the image stash provided by WP (see any edit window) or they're image files from some other site - gif, jpeg, png and so on.
The WP emoticon set is represented in posts as escape sequences - for example
Code:
:lol: :evil:
will display as
in a previewed or submitted post.
No Unicode is involved at any point - it's a simple substitution operation.
That you saw
:happy: would indicate something trying to use the same method but that sequence doesn't have a corresponding image, so it's just displayed literally.
As with
:rooster: or
:flag: for example - they're not known to WP.
But no Unicode characters are inserted by WP into posts - for obvious reasons!
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Giraffe: a ruminant with a view.