Odin's lie about Loki's true heritage shakes up the God of Mischief's entire life, but the reveal of Frost Giant Loki in Loki may redeem the Allfather's decision. In Thor, Loki (Tom Hiddleston) discovers the truth about his lineage. After turning blue while on Jotunheim, he confronts Odin and learns the Allfather isn't his biological parent. He isn't an Asgardian; he's the son of the Frost Giant leader Laufey. Though Odin grew to love Loki, he also took him in for other reasons, believing the child could help forge a lasting peace with the Frost Giants. Loki is crushed by the truth, which finally tells him why Thor (Chris Hemsworth) was always the favored son. Odin's lie drives Loki's villainous path, eventually getting him arrested by the Time Variance Authority.

The TVA is an organization that monitors the Sacred Timeline. According to the organization, the Sacred Timeline is the only thing stopping a Multiversal War, so the TVA must correct any deviations. These deviations are called nexus events. If anyone steps off the Sacred Timeline and creates a nexus event, the organization arrests them for being a variant and makes them stand trial. So when Loki steals the Tesseract and escapes from the Avengers in Avengers: Endgame, the TVA is immediately alerted.

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As bad as Odin's lie was, one Loki variant may redeem it. In Loki episode 2, Mobius (Owen Wilson) reveals several Loki variants that the TVA caught. These include Viking Loki and Tour de France Loki. In addition, there's also a Frost Giant Loki. According to the Sacred Timeline, Loki isn't supposed to know about his heritage initially. After all, discovering the truth is a formative event for the God of Mischief. So Frost Giant Loki's nexus event may have been knowing his true parents. Because of that, the TVA likely arrested him.

Loki in Frost Giant Form in Thor

The character is good news for Odin. As bad as Odin's lie about Loki's parentage was, Frost Giant Loki may prove that it was a necessary evil. If Odin had told Loki about his parentage at a young age, the TVA might have arrived to take the God of Mischief away. The organization could've even arrested Odin himself. The Allfather originally didn't tell Loki because he thought he was protecting him from the truth. Though it doesn't work how he intended, it turns out the lie did protect his son in a way. Odin had to lie to Loki about his parentage, and Frost Giant Loki proves it.

Though it was necessary, it doesn't make Odin's lie any better. According to the TVA in Loki, the God of Mischief is always meant to lose and make other characters achieve their best. Odin's lie makes that sad reality come true. When Loki learns the truth about his lineage, it tears his life apart. He questions everything and becomes desperate to prove he's a worthy son. It leads to his downfall. So while Odin's lie temporarily protected Loki, it also doomed him to his fate as a villain.

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Loki will return in season 2.

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