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In order to perform a Babality on Kintaro, you need to play on the default game settings, which means 2 rounds and 90 seconds, and you also need to play on Medium (or higher difficulty). Then, you need to perform a Babality on everyone up until you fight Kintaro, and you cannot lose a match (if you lose a match you are forced back into Player Select and it won't work).
The Babality on Kintaro happens automatically after you get the last hit, and it doesn't seem to matter if you are at the right distance or not.