Headcanon: Hulacar isn't Evil. He is Misunderstood.
Hulacar was never born evil. He was never born insane. Hulacar was born as the 2nd youngest of four siblings. His older brothers, Marnien and Cartrew, were the favorites of the parents. Marnien was strong and tall. He was a very good fighter, and he was to enroll as a recruit in the army. He was a paragon of strength, swiftness, and dexterity. Cartrew was not strong or fast in the physical sense. But he was a genius. Cartrew spent the entirety of his time in the library of Hulacar's large home. Cartrew was to enroll in an university, even though he was still a child.
Hulacar was smart, but not as smart as his brother. And he was not wise. Hulacar was also scrawny and thin, as he is now. But he somehow knew how to cast spells faster and better than anyone in the family. And even though he was an amazing spellcaster, his parents paid no attention to him, nor did they pay any attention to Hulacar's little sister, Pen.
Pen was the nickname of Hulacar's little sister, Pentalinwen. Pen was small. Even smaller than Hulacar. She was a tiny, mousey little girl. She always liked playing in the garden. She would always sit outside all morning smelling flowers and laying down in the fields. She was quiet, unlike the rest of her family. Her parents thought she had been "special." Hulacar knew that wasn't true, though. Because Pen used to sing songs softly in the fields. She knew how to take care of every flower in the garden. And the only reason why she slept in flower beds rather than in the house was because she felt free.
Hulacar loved his sister and would sacrifice everything for her. Cartrew and Marnien felt about Pen in quite the opposite way. They thought Hulacar was weak, and they had thought Pen to be stupid. They would tease the two constantly and the boys would never get in trouble as they were the eldest brothers.
Hulacar only felt happy when he was studying his spells or playing with his sister. Hulacar found he was especially good in the Destruction and Alteration schools. Although he never wanted to use the Destruction school for violent means.
One day, on a sunny morning, the flowers were blooming and Pen was sitting with Hulacar in the flower fields. Hulacar was trying to use Alteration magic to make the flowers bigger and grow faster. Hulacar failed a couple of times, and blushed constantly at Pen's quiet laughter. Then Cartrew and Marnein showed up with devious grins on their face. Marnien pushed Hulacar's face into the dirt. Cartrew slapped Pen in the face. What happened next was both brothers punching and legitimately beating Pen. And neither of the parents were home. They weren't going to be stopped by anybody.
Won't be too bad. Just knock them out. A simple shocking spell on them while their backs are turned will teach them a lesson.
One moment the two older brothers were laughing as they beat Pen. The next, both brothers were on the floor and blood spattered everywhere. Hulacar shocked their spines and shocked them too hard. Their back ripped open.
Hulacar just stood there. Stunned. And Pen just looked at Hulacar. Her face was unreadable like stone. And Hulacar only had one thought. Drag them somewhere far away.
Pen remained quiet. The parents grieved over their missing boys. And when they were found, they felt hopeless.
Pen and Hulacar never said a word. Their brothers tortured them. Though it may sound morbid, they were glad they were gone. That didn't stop Hulacar from feeling bad, and constantly falling deeper into insanity.
Pen and Hulacar grew up. They still played in the flower gardens. And Hulacar even started turning the flowers into something great and marvelous.
Pen was still small. But she was fast. She loved to run and jump and climb. She was quiet, too. But she still sang softly on the cool breezes in the fields.
Hulacar was a master of his studies. He was the size of an average female Altmer. He excelled in his Alteration studies and altered a pair of fly traps into man eating guard plants for the home to protect the home.
Hulacar's parents eventually died. Nobody knows how. Hulacar and Pen had the house all to themselves. Pen and Hulacar had servants and they took care of them and the house. Pen and Hulacar were barely in their twenties. Hulacar was 25 while Pen was 22.
Hulacar was still going deeper and deeper into insanity. He joined the Thalmor and very swiftly gained a high position. His sister did the same and became an agent. She was fast and quiet. Nobody would see her. She became one of the best. However, Hulacar and Pen were a part of two seperate sects of the Thalmor power. But every month or so, they would meet in the flower fields and they would be happy.
This is how Hulacar went deeper and deeper into his insanity. When he was backstabbed by Elenwen, Hulacar became trapped inside of Skyrim. His sanity was all but gone. He never got to go back home in the Isles to see his sister. He couldn't go to the flower fields in the warm sun. He was stuck in a cold barren wasteland.
Hulacar is not evil. He is angry. Hulacar isn't a psychopath. He just wants to see his sister. His little sister.