Unlike other Slug Cams which are loyal to Betrayus, Larry appears to actually be friends with the Ghost Gang and does not appear to be evil at all, and actually waves hello to Pac-Man when first meeting him and gladly helps out in his plan to stop Specter.
The Spy Who Slimed Me
When Pac-Man wanted to stop the dangerous ghost Specter from stealing the Repository, he needed to find away to stop him from coming back even if he ate him. That's when he concocted a plan to have the Ghost Gang record Specter's true intentions and show them to Betrayus in order to have him imprisoned. To do so they would need a cam and so Blinky sought out Larry to help them in their plan. At first Pac-Man was skeptical, but the Ghost Gang convinced him that Larry was a friendly and named Slug Cam. They then orchestrated an event in which Specter would reveal his true colors while Larry recorded him. Larry then edited the footage and transmitted it to Betrayus who upon seeing it banished Specter to the bowels of the Netherworld, making Larry a genuine hero.