I see a few options here.
1) Te'o was duped and had no idea, therefore making him one of the dumbest, most gullible people of all time. Oh, and a liar, since if you back track to quotes, he made endless amounts of stuff up. I mean you never go and visit? Have never seen her? But she's the love of your life? Yeah, okay.
2) Te'o was in on it and used it as a publicity stunt to hype him up, in which case he's pretty messed up in the head to fake a girlfriend that dies from leukemia.
3) Te'o "plays for the other team". Since he's Mormon and attending a Catholic school, he made up these crazy lies to attempt to divert any thought about him being a fan of sausages rather than tacos.
For his sake, I think #3 would be the best outcome. I don't care how you look at 1 or 2, he will still come off looking incredibly dumb.
All of this is just my opinion, I don't hate ND have no agendas. I find it incredibly hard to believe that someone can meet the "love of their life" without meeting them, ever. I also find it hard to believe he would purposely do something like this for attention. Maybe it's a combo of 1 and 2, where he was duped, embarrassed, so ran with it. But even then, is there a point to fake killing the "girl"? Could have just broken up with her.
I just find it hard to look at Te'o like he's the "victim". If it was all a big joke played on him, the real joke is the fact that this guy actually fell for it. I don't care about other Catfish stories of anything like that, this particular case with the details we know so far, anyone here ready to openly admit that anything like this could happen to them? Meet the love of your life online, who gets in a life threatening car accident, has leukemia, you never visit her and have never seen her... But you've dated for almost 2 years?
Seriously think about that. That's laughable.