Populist politicians such as Viktor Orbán are masters at harnessing intense and polarizing moral emotions: they stigmatize the enemies of the people, offer their community protection as self-proclaimed heroes, and at the same time, othering and moral transgressing trigger emotional overreactions from opponents. This article draws on a new analytical framework that incorporates theories of social labeling (moral panic and euphoria, moral entrepreneurship) and heroic/charismatic leadership to explore this multifaceted and antagonistic emotional relationship associated with populists. The theoretical reasoning suggests that these emotional dynamics define the moral cornerstones and boundaries of populist identity politics. Based on an analysis of four illustrative Hungarian cases – the migration crisis, anti-gender politics, the Authorisation Act during the coronavirus pandemic, and Fidesz’s expulsion from the European People’s Party – the article shows that populists can follow different paths to become charismatic heroes in the eyes of his supporters, while others still see them as folk devils due to their controversial moral entrepreneurship.