So I'm the only person who thinks this makes litchi more interesting? It's called a dramatic twist. They keep characters from becoming that stale 1 dimensional anime character. I feel that people are forgetting that they are trying to tell an interesting story here.
She was, after all, quite boring and useless to the story without this predicament. The way Bang and Hakumen are virtuous is cool because they are overly heroic and epic about it. That thick-headed, sometimes self serving, and overly dramatic style is my favorite archetype for a hero character. Litchi wasn't that interesting as just someone who was there to be nice to everyone. She had no business being in the storyline at all, she would have just been the busty fighter game chick, which by no means is a bad thing of course.
If people think this is coming from left field then I have to ask if they were even paying attention to how obsessed she was with arakune since CT. You had to figure something like this would happen with a villain as manipulative as hazama.
All I should have to emphasis is that it's a story, not real life. In a good story, the characters and their flaws are there to keep the story going and keep it fresh. I realize that this is a fighting game, but if you are going to have a character-centric story then the characters are the plot devices and they must be interesting and evolve to make the story work.
Also, the return of her drunken perverted lesbian cosplay fanatic antics just adds to my love for her. Does that make me weird?