Ego is one of the major hurdles to self-realization.
God cares for every one of His creations and all experiences in life are designed by God to remove the barriers that prevent you from reaching the destination that He is.
The king Bali (Mahabali) was renowned for his charitable nature. But his ego gradually became inflated because of this fame. For the king to become enlightened, his ego had to be quelled. And that is the substance of the Vamana Avatara.
Mahabali was not "killed" in the conventional sense of the term. God, by placing His Lotus Feet on Mahabali's head, facilitated total surrender of this devotee and made him king of the netherworld.
Mahabharata and other mythologies detail many instances of how the Lord captivates His devotees, vanquishes their ego thus granting them salvation.
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