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Karl is a professional wrestler but he is very calm.
Karl happened to be walking near where Osaka and the protagonist were. If the protagonist choose to request for Karl's help, Osaka will identify him as a threat at immediately punched him. Karl was unfazed and he decided to fight against Osaka. If the protagonist chooses to help him fight, Karl will break the protagonist's arm and he will die. Karl explained that he sees the protagonist as weak and that he wanted to fight against Osaka by himself.
If the protagonist choose to confess his feelings for Osaka, Karl explained that he recognized Osaka's feelings for the protagonist. Osaka then handed Karl a katana and requested him to kill Osaka and the protagonist. Otherwise, Karl will be busy fighting with Osaka and the protagonist walks away.