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I know the movie have always strayed from the comic books and one of the reasons Thor Ragnarok is so great is because they did. But Hela’s existence makes some plot hole greatly bigger and here’s my theory about a couple of things.

First, the plot holes:
1) Why do Loki and Hela look so similar? I know in the comic books it’s because Hela is Loki’s daughter but since that’s not the way it is in the movie, why is her character design so similar to his.
2) What is Loki’s story? I get it. Odin found him on Jotunheim as a baby but how did Odin know he was left to die? How did Odin know that was Laufey’s son?
3) Is Hela Frigga’s daughter? If so, why doesn’t she mention her mother? Does she know she’s dead? If not, then what’s Hela’s backstory? Who is her mother? Why wasn’t her mother and Odin still together? When did Odin marry Frigga?
4) When did Hela get banished? When did she try to overthrow the throne? She hints that she remembers when Thor was born. And that leads us right back to number three. Is Frigga her mother or not?

Loki and Hela, compared side by side in battle armor and in custom attire.
My theory:
Odin’s first wife was Hela’s mother. But she betrays the throne (how and why is unclear. Maybe she wants Odin dead so Hela can take the throne) but thanks to Heimdall’s awesome eyeballs, Odin finds out and he has Hela’s mother banished.

Hela is upset by that for obvious reasons but she’s loyal to Odin, thinking he’ll continue his campaign to rule the Galaxy soon enough. But then he marries Frigga and starts to have another family and it becomes obvious that he isn’t. Insert the rest of canon here.

Meanwhile, while in banishment, Hela’s mother goes to Jotunheim and starts an affair with Laufey even though he is already married.

She becomes pregnant and gives birth. She tries to go to Laufey but the baby is a bastard and to get rid of the bad situation, Laufey orders to have her be killed. She ends up detrimentally injured and runs to the temple. Since Heimdall can hear all, she asks him to tell Odin to save her child. And she dies. Heimdall tells Odin, and since the Jotun are starting a war anyway, he goes to Jotunheim and find the baby, and takes him as his own.

Therefore, Hela and Loki are half-siblings.

I full-heartedly believe this and nothing, not even canon, is going to change my mind.