Kids shocked and hurt was normal reaction;after all K had to think they will know some day,now that Yug said it maybe was better than if others would have done it. Things will be better once they get over actual day events.
Action and reaction and pain for pain. Kairi is not the type to fall for long,she's as sad as kids are but brave,fighter. While other fl would cry weeks cause truth was exposed like this she will be fine. All this show created by Yug doesn't make him happy.
He will also go back to softer version.
Fighting on Kundan side for custody this is his chance to trap and punish him for the past,hope he won't miss it or mess it up,that guy belongs in jail. Can start on one side and end up defending Kairi,once his revenge wish is satisfied.
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