Board Thread:Questions and Answers/@comment-76.90.171.114-20130102015154/@comment-1960111-20130102055619

Ah I see what you're getting at. Well this issue is still being debated actually. Hakumen and Bloodedge are results of the loops, but the Black Beast is said to have been created in the original timeline when the Cauldron went out of control. Of course what you've said might just be the answer, but apparently, even Calamity Trigger Reconstruction hasn't explicitly explained everything yet.

There is a really hot debate about this topic on dustloop, where everyone starts going on about quantum physics theories and lots of related shenanigans, but they still get nowhere with it. The only thing we can do now is speculate, and wait until Chrono Phantasma to be released on console to see if Mori cared about explaining his mind at all.

Or, we can wait for XBlaze since this is also part of the BlazBlue universe. Even before the Black Beast became an issue, there are already important subjects to think about such as magic, vampires, Cauldron, and most importantly, the Azure.