Charlie is one of those gamers who, in massive multiplayer situations, gets his power and jollies from manipulating the other players. His whole strategy isn't to play the game to beat the player, it's to play the PLAYER to beat the game.
By selling information at high prices, ruthlessly switching sides or dredging up onerous, expensive contracts on a whim to pull someone's nuts out of the fire, and by strategically selling key information to different sides, this sort of player can keep the other's so busy with their conflicts against each other that they willingly fund him and are too busy fighting each other to bother with him.
This clever little tactic is ruined if said player gets too powerful too fast. So, as a result, one has to project an air of 'cultivated weakness' (too weak to be a threat, too strong to be worth fighting), or give the impression that attacking them is not in the attacker's best interest (whether by him knowing their secrets, having superior forces to make it unwise, or having allies who can affect them in other ways).
The total 'power' of such a player is thus directly proportional to how much they can influence the other sides.
Usually, however, such players tend to be considered utter boopbags since they don't really have friends---aside from their money. All of their influence comes from judicious use of power and being more useful than a nuisance.
Charlie has seen a TREMENDOUS drop in power because of recent events. It's no surprise he's 'lonely' and seems weak. He IS weak. His ability to influence others has taken a sudden and dramatic downturn. Everyone before knew he was trustworthy only when paid, and the only guarantee was that he could turn against your interests if someone else offered him more cash. He was a necessary evil since 'using' his abilities could give one side an edge over the others.
Now, however, he's not even trusted THAT far.
The problem with Charlie is that all his tricks depend on having someone ELSE to use. He's become so adept at playing the players that his ability to actually play the GAME has atrophied. This is what makes Parson so special... he knows how to do BOTH. Is it any wonder Charlie wants him on his side so badly?
As far as the RCC and major (currently revealed) players of Erfworld can see...
*He sold various intel and communication at outrageous prices to sides in the Alliance before the Battle of Gobwin Knob.
*He was willing to assist in battles that put his own units in no extreme risk (Jacelyn was an exception since she did that on her own).
*He had MORE that sufficient forces ON HAND to take the entire city for himself from Stanely OR the RCC OR whichever side won the fight with the other, but refused to take over in either former case because he was not a true supportive ally and in the latter place because... oh, wait, people don't KNOW what happened after that.
*After the big showdown where the RCC lost countless units in the final assault, all he did was assist in negating the Dance Fight bonus at great cost.
*Everything in the Gobwin Knob Hex was annihilated, along with units in the six surrounding hexes... and after this, Charley ONLY offered to tell what happened if people paid an outrageous sum. (This is a case of his tricks biting him in the boop... he may have wanted to give the info out, but was afraid it wouldn't be believed, instead of charging for it. If he had at least TRIED, he would have given the impression that he was as much of a victim as anyone else. Now he looks like he deliberately KNEW EXACTLY WHAT HAPPENED and refused to share when it was needed... even though he didn't know then).
*He has independently lost Archons which NOW show up in the massive force that seems to be swallowing up Allied cities left and right like an unstoppable juggernaut, and he still refuses to give up information for free to anyone who could pose a threat.
*A major Royal has pointed out these details and concluded that Charlie must be working for the most hated enemy in the game, which effectively cuts off his powerbase at the knees.
Slately may have figured him out and spread the lie about him being on the other side to drive another nail in the coffin that contains Charlie's powerbase. Or it could be what he honestly believes... he has more than enough evidence to think it's quite likely! Myself, I think he's just like I would be in such a game... despising such an underhanded manipulative player for what they are and finally seeing a chance to remove him from the game, or at least stall him enough to where he devolves into a non-issue. Archon upkeep probably isn't cheap. Doesn't matter if the accusation is true, the guy's done enough nastiness when he had power, it's best not to let him get it back.
I only wish he had revealed his position to Parson instead of Jillian... "No Royal side west or south of me will even take my calls..." This is the first comfirmable evidence anyone has HEARD of for his location. If someone were to map out the known kingdoms of the RCC and look at the non-allied nations to the east and north of them, they could most likely triangulate the location of his capital. Jillian probably won't put that much thought into it though. I still like her as a character, I just hope she can manage to navigate between the manipulations of everyone else. It seems SHE is currently the weakest known side, even more so than Charley, because at least he has heavy-hitting units he can rely on.