According to Osho, Krishna leading Kalyavan to Muchukunda is a symbolic drama: Kalyavan is kala—time, our greatest torment; Muchukunda’s sleeping eye is unconsciousness. In Krishna’s presence, awakening happens—the eye opens and burns time. Krishna runs ahead of time; thus time, now merely a shadow, is consumed. The tale teaches transcending temporal bondage through awareness, not conflict.
It means Krishna’s awakening presence ends our sleep of ignorance so the ‘demon’ of time loses power and disappears.