According to the game's Konquest mode, Caro somehow lost telepathic contact with Blaze sometime shortly after the two brothers were entombed, and, mistaking this for the signal the fire elemental would use as the call to Armageddon's arrival and the beginning of their quest, awoke Daegon prematurely. Daegon, enraged at the trickery of his parents, seemingly killed them and enslaved Caro, using his name and likeness as the basis for the Red Dragon Clan. Daegon also used his ability to create portals to transport his troops anywhere in the realms, and his DNA to create a race of half-human dragon creatures. He was freed from his servitude by Taven, and despite his weakened state, took his revenge on Daegon by destroying his precious Red Dragon clan and headquarters. His final fate is unknown, though the ending to Konquest mode suggests that he has died.
In Mortal Kombat X, Caro makes a cameo appearance in Takeda's arcade ending, where he's discovered by Takeda and Kenshi again as a prisoner of the Red Dragon, and revealed Daegon to them as Suchin's murderer, then transported the two to a cave where Taven was encased to free him, saying he would also have a reason to confront Daegon.