For some reason, the Satsui no Hado doesn't live inside of Ken, but using Bison's Psycho Power, Ken has become a soldier of Shadaloo (in a parallel universe, of course)

Ken becomes jealous as Ryu gets closer and closer to becoming a true martial artist. But Ken's heart is weak, and is consumed by this jealousy. Bison's psycho power resonates with fear and suffering, and can easily control people who fall victim to their own emotions. Ken's regular flame turns purple due to the psycho power, and his blows become filled with hatred. However, when Ken sees Ryu's red headband, he temporarily gains control of himself, because he recalls all of the memories he shared with his eternal rival. (Yes, this is still in a parallel universe)