Tyga knew the deal and even threw up smoke signals for Rob Kardashian about hooking up with Blac Chyna ... but thinks Rob was ultimately blinded by love.
Tyga went on "The Breakfast Club" Thursday morning and talked about his breakup with Kylie Jenner, and her brother's relationship with Chyna ... Tyga's baby mama. He says the overlapping relationships did NOT create an awkward situation, but he also knew Rob couldn't handle Chyna -- for a bunch of reasons.
On the biz side ... the rapper says he had to pay a million dollars to end his contract with Cash Money -- but also claims his old label still owes him $12 mil.