Well, if the story is about this character being abused as a child and bullied. But then wants revenge and is promised by the main villain of the MK series that the revenge will be granted just have that character be recruited in the Forces of Darkness that'd be awesome. But also, there should be a character in the Forces of Light that would help him get out of evil and convince him that there are better solutions than joining the dark side. Maybe a new homosexual character that would become his love interest or anyone else in the Forces of Light (new or classic) that would help him. Then this character would fight for the good side. The story should be similar to how Kitana and Jade were brainwashed by Shao Kahn to work for him but both betrayed him to fight for the good.
For this to happen, there should probably more characters that should be related to him. Mostly in the LGBT community (both evil and good) and more homophobics.
Then this story should make sense a little more than having the audience think that just because a character is gay and twisted (psychologically) for no reason, then they'd think all gay ppl are like that.
But with a clear background of the story and a few characters that would play very important roles of this character, there shouldn't be a need to worry about too much prejudism. And yes I know how much we'd get criticized if there was no clear reason how this character became psychologically twisted.
To top it off, I think it'd also better of this character was picked on by homophobics and other gay ppl (who don't want to accept him for who he is because of how he looks like) as a child to adolescence since he was fat and gay. Then he became sexier as he grew older but with a very dark personality and emotionally vulnerable.
I hope you understand where coming from. (Especially when you and I are in the same community.

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EDITED (Damn phone is making type errors!)