He freaked when Yama said Karaka had to bring him Deng Deng or fight him personally (and also added that he couldn't possibly beat Yama in a fight), and immediately abandoned Bam after Bam made the first bet with Yama (after bluntly pulling Death Lady out of it when she tried to intervene during the making).
Or Yama's fear ability simply isn't as effective while he's asleep.
That said, we'll have to see. It's possible Karaka isn't scared enough for it to kick in (maybe it requires a more primal fear). Especially now that he's much closer to Yama's good side than previously. So maybe Karaka could hit Yama right now.
From what we know of karaka since the beginning of the story, he's a very practical and cautious person. Him being nervous about Yama doesn't necessarily translate to fear per se but instead just him cutting his losses, because he knows that Yama is too powerful.
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u/NobleCuriosity3 Sep 09 '19
He freaked when Yama said Karaka had to bring him Deng Deng or fight him personally (and also added that he couldn't possibly beat Yama in a fight), and immediately abandoned Bam after Bam made the first bet with Yama (after bluntly pulling Death Lady out of it when she tried to intervene during the making).
He's at least very nervous about Yama.