Bad Guys Just Wanna Have Fun
After the creation of Pandamoanium there was something like a polarization effect on the world. Whereas before there might be many cities with no particular spectrum affiliation populated by people all over the spectrum, now there was this one particular place meeting the particular needs of people at one extreme edge of that spectrum. This left people to wonder why it was that their needs weren’t being specifically catered to, since obviously it was a thing that could be “easily done”. So, closely following the creation of Pandamoanium the various settlements and cities in the world more closely defined themselves along the spectrum in order to suit the particular needs of their citizenry more closely. This led to some places being evil, some neutral, some lawful or chaotic, and, most importantly, some good. The foremost of these Good city states was deigned to be called Karmalot by its Primary Reformer, though only he/she/it’s title is generally known.
Karmalot is a very, very strict state where Good can and will be enforced to the greatest extent possible, regardless of the means required to achieve it. This highly structured and militaristic approach to ethics has manifested most notably in the “reformation” of many formerly independent cities into likewise good entities.