A lot that Olaf's told us I've surmised from hints dropped by Yolara.

But I got the full key to it from the Red himself when he stopped me just before--before"-- he reddened--"well, just before I acquired that brand-new brand of souse.
"Maybe he had a hint--maybe he just surmised that I knew a lot more than I did.

And he thought Yolara and I were going to be loving little turtle doves.

Also he figured that Yolara had a lot more influence with the Unholy Fireworks than Lugur.

Also that being a woman she could be more easily handled.