Was Cao Cao A Hero Or A Villain In A Time Of Chaos? How Did Luo Guanzhong "Slander" Cao Cao?

In the Romance of the Three Kingdoms, Cao Cao is portrayed as a quintessential "treacherous villain." He is suspicious, cruel, and cunning. His famous quote, "I would rather betray the people of the world than be betrayed by them," has almost become a definitive indictment of his life. That single statement alone is enough to convince generations that Cao Cao's nature was treacherous. But let's pause for a moment. In what context did that quote appear?