Last time around I felt good about Blarg because he had someone corroborating his story. Retro probably is Blarg, but that doesn't mean he's telling us the whole truth. His action has a convenient piece of plausible deniability, wherein it just doesn't work. Better to get rid of him now than wonder about him in the coming days.
Ehh... the more I think of it, I don't like how much his power can just confuse/mess us up. It's an annoying power and all, but we'd still be trusting him to tell us who he used the power on. Also I mean... last Blargonaut I played gave us a benefit when he died. It's possible he's obscuring it. I'm still not 100% sold, only because in this case I'd prefer we try to hunt scum, but I'm not entirely against lynching him either.
Is Royal_Flush still your number 2 choice rats?