Vargas camp was gunning for El Feroz to beat a big name for bargaining chip on an eventual showdown with ODLH down the road. Unfortunately, they have the wrong gameplan to implement against Tito. That's also a sign they were not ready. Instead of following the blueprint that Oscar laid, they played macho and went toe-to-toe. It's not just Vargas himself, but the entire team.
I think he was. If anyone wasn't ready to face Trinidad it was fellow 1996 Olympian David Reid whose eye looked like a piece of meat half way through the first round. Vargas had defeated the likes of Campas, Marquez, Quartey and Wright. Yes he was a young man by the time he fought Tito but he already had that experience against top level competition, and he'd beat all of those guys (very close fight with Wright). Vargas put in a rather brilliant performance against Trinidad, making it a relatively close fight. Tito just ground him down, started to run away with the rounds later on and Vargas went for broke in the twelfth. It just didn't work. After that he then went onto to beat the tricky Wilfredo Rivera and put in a very solid performance against Oscar de la Hoya. This is just a personal speculation but I think their decision to fight a classic Vargas fight may have been to do with their experience during the Wright bout, where Wright had walked Vargas down being his high guard, combination punching and strength. Vargas by many peoples scorecards was lucky to win that fight, where he had been forced to implement lot of lateral movement, trying to get in then get out. I think they may have thought that if they went straight at Tito who was vulnerable to being hurt and going down in the early rounds, that plan would have suited a fighter like Vargas much more than using lateral movement and picking opening to get in and do some quick work on the inside or at mid-range.
Vargas was a self described "hell raiser", who had gotten arrested for assaulting a guy with a golf club. Main Events probably didn't want to move him slowly because of concerns that he'd self destruct outside the ring. In their mind, it's better to get his big fights and make the money now, just in case he ends up in jail without having made much money for the company.