No human ever loved him back then, did they? His parents probably beat him mercilessly. No one else seemed to care about him. His family a violent mess, no friends, and his only solace a garden of flowers where at least people would leave him alone. One day he heard the story about that mountain. Perhaps due to his young age and not fully understanding the meaning of "disappear" in the story, he didn't actually want want to die but the idea of disappearing someplace may have appealed to him. So he departed for the mountain.
He disappeared, but not in the manner those humans talking about the mountain actually meant. He fell into the underground. It was here that he finally got a family. And from there, we have a decent idea of the rest. He came to like monsters, and learned of the barrier, all the while hating humans all the more for the fact that they even hurt the only beings willing to accept him. Something happened, and he knew he wouldn't be alive much longer. So he set up a plan with his brother. He would give him his soul, and his brother would be able to exit the barrier, collect the 6 necessary to open the barrier, and free the monsters those horrible humans.
As we know, it did not end as he had hoped. After laying his body by the garden of his youth, his brother refused to fight back against the humans who attacked him. No matter how many hits he took from their weapons, he never struck back, and instead fled, horribly wounded back through the barrier.
It is the next part of the story where things start to become more interesting and up for debate.
6 fallen humans later, something happened. Chara awoke, together with a child called Frisk. However, at first he is still groggy. Frisk is the one really in control. And Frisk's actions affect Chara as time goes on. As he realizes who flowey is, he warps even further. In a world where Frisk just kills everything, his negative aspects merge together with Frisk, and barely a spark of hope remains. In the end, the demon (i.e. Genocide Frisk and the partially subsumed soul of Chara) senses this hope though, and decides to make a deal. Give him the rest of your soul, Chara, and he will bring the world back. This is why, in a playthrough where someone genocides twice, the ending is a little different, for even after making such a deal, the demon was unable to destroy that hope.
In the pacifist route, of course, Chara is not riding along with a would-be demon. Frisk is still in control, but learns that it is possible for a human to be kind. It is possible that Chara comes to really regret what he has done. You may be playing as Frisk in the final battle, but what is the "it" from the message "but it refused"? That "it" is Chara. He may at that point already think that he himself no longer deserves to be saved, but that won't stop him from being a hippocrite and wanting to save his brother. No matter what may happen to him, he will do whatever it takes to help Frisk save his brother.
People who like to say stuff like "frisk is good, chara is evil." But in a way, this is actually a very ironic thing to claim.
Undertale is a story where Asriel himself can change based on your actions. And people want to save him, because they accept this fact. And yet, people just assume that Frisk and Chara are two unchanging things, and just pretend that the route is just based on "which one is in control" or some nonsense like that. No, Player. YOU are Frisk. Your actions are what determines Chara's fate. Be cruel and torment him by killing every monster in your way. Strike down his mother and walk over her bloodied corpse, and he becomes warped to the breaking point. The way he sees the world just devolves to the point where he will even look at a kid and say "looks like free exp." Play it nicer, and even if you do still kill some, he at least is able to feel that some good is within you. And thus, the way he sees the world is not warped so badly, and the various descriptions and observations Chara makes are much less tainted.
Chara doesn't kill monsters. Player/Frisk kills monsters.
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