There once was a God of Chaos presiding over the human realm. His name was Aesir. Part of him took pity on humanity, and split himself in two: Loptr (his evil side) and Loki (his good side). The good side, Loki, retained the "Sovereign Power" that gave him control over the Eyes of the World. These eyes were bestowed upon humanity to give them free will. One eye went to the Lumen Sages, and one eye went to the Umbran Witches, who together maintained a balance that moved mankind forward. Fast-forward to the Witch Hunts, and Loptr kills Rosa so that when Loki appears in the present, he can convince Balder to time-travel to the present and hunt down Loki, thinking Loki is Loptr, the man who killed his lover. Loptr wants Loki dead so that he can regain his Sovereign Power, once again becoming Aesir, only this time without that pesky "good side" getting in the way. To further cement his power, he needs to recapture the Eyes of the World from Balder and Bayonetta, robbing man of free will -- or so he thinks. In the end, Bayonetta and Balder (her father) were able to defeat Loptr since Loki remembered how to use his "trump card" -- Aesir's ability to negate, or turn to nothing, anything and everything. He negated Loptr's power, Loptr's body was defeated by Omne (a new summon, existing at the intersection of light and dark, brought about by Bayonetta and Balder) and destroyed by Gomorrah, and then Balder trapped Loptr's soul before it could flee to another time period to be reincarnated again. Doing so means Balder will go mad, since the evil influence of Loptr is so strong. When he loops back 500 years in time to Vigrid, the newly-evil Balder carries on the witch hunts, which will of course lead to the events of Bayonetta 1, where in his madness he attempts to resurrect Jubileus, and is defeated by his daughter. Which as we see at the start of Bayonetta 2, leads to him passing away at the head of Jubileus in some jungle somewhere, dragging down Loptr's spirit with him. Together, the two games form a perfect loop.