Do people who take pleasure in others' pain fail to understand the reality of karma?
No, this is their Karma. If they ever realize truth and go through the process of enlightenment, it will be very painful for them to see this part of themselves and forgive themselves for it. I can only imagine how painful it will be. I never consciously took pleasure in others’ pain and still there was a lot of ugliness in me, so I can only imagine. It must be hard, very hard indeed. The further you depart from truth, the harder the fall.