Did karzahni actually die?

Karzahni was confirmed dead by the toa Nuva after finding his body, but he was killed by a simple stab wound, from a Matoran? I know that his mind was scrambled by makuta teri, but it was indicated that he got it back. Just seems a bit suspicious, more like he made velika and the other toa believe he was dead to accomplish another goal.

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“I consider him to be dead”
Official Greg Dialogue, July 26, 2010

“Karzahni died on Spherus Magna”
Chat with Greg Farshtey, November 1, 2013