Cobra Kai finally explains this Daniel and Ali mystery from Karate Kid 2
With Ali Mills Schwarber's return to the Valley during the third season of Cobra Kai, audiences finally get to hear her side of that night, which she explains to Johnny, Daniel, and his wife Amanda (Courtney Henggeler) at a holiday party. With the wisdom of age, the team behind Cobra Kai is smart enough to realize that perhaps you shouldn't trust everything a teenage boy has to say about his breakup.share
According to Ali, she had been on Daniel's case for a while about the brakes in that old car, and it was the fault of those, not her own driving, that led to the accident. The football player from UCLA really was just a friend, but Daniel, she explains, "jumps to conclusions" and assumed the worst.
Ali does admit she egged Daniel on, hoping he'd learn his lesson and realize his lack of trust was his problem, not hers. Unfortunately, even Mr. Miyagi would probably have to admit that Daniel is a pretty slow learner. The ensuing fight ended the relationship, and kept Daniel's misconceptions about it intact for more than 30 years. At least it beats getting killed off-screen.