Collapsing the diabetes risk is far more important than a coinciding rise in LDL cholesterol. Assuming you are fat adapted you will need more transporters. Usually, triglycerides go down and HDL goes up (which is what you want). There is a consensus that LDL is causative of CVD, due to the Diet Heart Hypothesis (the important aspect is the bold and underlined word). The science at the time of the hypothesis did not even know about the sub fractions in cholesterol such as apoB, which is the atherogenic particle (this is where some degree of focus should be).
The way I think of it is if cholesterol were three quarters of a cup of pure water, then I added more pure water to the cup, would it become bad; I would have thought something would have to either be wrong with the water in general. This is the gist of the alternate hypothesis that cholesterol can become damaged by becoming too sugary / oxidised by food and lifestyle choices.
