I can't see what the Daitengu would gain from orchestrating this, but I agree it's suspicious that much of the planning came from within the Alliance.

[ Yuri had slinked in looking a little scuffed up but eyes alert. Having listened to Ydris and Ryouma up to this point, he's going to put out an idea for them to chew on. ]

What if the Alliance isn't as unified as we believe? If the Daitengu is an idea and anyone can assume the identity, maybe a tribe within the Alliance is scheming to instill a member of their own in the position, and used the Kappa as scapegoats to deflect blame.