It's Bungie's way of inputting story content.
The Vestian Outpost was the Queen's Palace, which explains why there are no vendors other than the Variks, the House of Judgement representative.
Not sure why they allowed a cryptarch in the Vestian Outpost and not a gunsmith or faction representatives, but I stopped trying to understand how and why Bungie does things long ago[spoiler]it's much easier this way[/spoiler]
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From his random insults at me and the tower, I doubt the cryptarch is an Earthly awoken. Plus his eyes are blue which supposedly means he's a reef awoken. He seems to work directly for the Queen and only begrudgingly assists us.
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Lol I've had better engram drops at the reef than I do usually in the tower... Maybe he feels more generous in his natural habitat lol