I guess it wasn't explained as well as it could have been. There is truly no Red for killing another player.. Red is what the players call those people/guilds who kill other players.
The game system makes no distinction between stealing/attacking/killing another player.. they all go Orange for breaking the rules. So when Kirito says he has no problem going Orange for awhile that means he was actually willing to kill her if she wouldn't cooperate. Kirito=Badass!
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