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Greed probably took over him, he was blinded by it. Knowing the Meeches were giving him good sales, he continued without thinking of the long-term consequences. A similar thing may have happened if the Mudokon Pops idea went into action, he might have killed too many Mudokons, thus severely reducing his worker count, meaning he would have to find more employees.
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Don't forget the pathological hatred of nature shared by all Glukkons - conservation sure as hell isn't on their to-do list.