OMG, POSSIBLE THEORY W/ MASAMUNE
It mentions that in 1005 AD The Masamune was stolen from Guardia Kingdom then in 1006 Wazuki is consumed by fate (creating Lynx) something I never thought of that could be possible is that the times are off and Wazuki stole the Masamune!! (We see Lynx pick it up after Karsh kills Dario and hes not driven mad by it. Like the game mentions the Masamune draws out the hopes and dreams of it's bearer. It's been made pretty clear that FATE's only real concern was that it's existance and the chronopolitans would last until at least 2400 AD ((when FATE was destined to be built)) to ensure they would exist to be drawn back to 7,600ish BC to defeat the dragon gods and Dinopolis that the planet draws back to counter the drawing back of Chronopolis by Lavos! Thus ensuring FATE's existence)
So right after Lynx is created he and Harle (who was created by the dragon gods in FATE's shutdown to steal the flame) try to convince Lucca to release the Promethius lock on FATE (As Lynx is fate incarnate). They burn the place and the Mastermune (which is the Masamune with the added sister spirit Doreen created when beating Dario and Masa/Mune say they feel like they woke up from a bad dream) sends Serge and 2 friends back to Save Kid and a few children
Now because FATE was already around in Serge's time and Serge messed up it's hold on things and caused a time split, and FATE knew this would happen (thus sending Lynx to eliminate him) it could make sense to say that Wazuki took the Masamune and FATE's hope was an evil one it turned the sword evil!!
possible you think or am I just crazy?