I want to start by saying that this is one of those super lucky times when we can say without any sort of ambiguity that this is NOT the intent of the rule in question.
"The Betrayer: You cannot re-roll or modify hit rolls of 1 made for Khârn the Betrayer in the Fight phase. Instead, those attacks automatically hit a friendly unit within 1". Randomly determine which unit is hit if there is more than one. If there are no friendly units within 1" of Khârn, the hits are discarded."
Notice the problem? It hits a Friendly Unit within 1". Khârn himself is a friendly unit within 1" as per the rules for Auras in the Rulebook. Rules as Written, rolls of 1 can never be discarded and instead cause Khârn to punch himself.
Not posted in YMDC because this isn't so much a rules question as a "look at GW being silly again" thread.