He's an AI, meaning he has moral agency issues. But still, amoral characters can still be villains.

^ yeah, just like AUTO and B.R.A.I.N.

He doesn't understand humans very well AND this is the old version of him

Gooseworx has said that Caine is not evil, just mischievous.

Mischievous characters can also be villains, you know. I guess he's one by proxy.

He only did this because he was on cocaine

A whole suitcase of it will do that to ya

Haha, very funny pun.

Indeed, he might easily be qualified as inconsistently heinous due to exposing “former humans” to the wacky environment of his world, consequently taking away their sanity, while just wanting to have some fun with them, being unable to comprehend the gravity of his acts.

Sadly, it's too early to consider him a villain, and non-villains can no longer be Inconsistently Heinous.