It's a lot more satisfying if they don't see it coming then immediately realize that they should have seen it coming. (based on information you had previously put in their path)
Reposted from Actually Ghostface
From a CoC Keeper of 10+ Years:

If you're gonna have a betrayal arc, sow the idea that the person may be not all they seem. Give the party reasons to investigate and be sus. Don't spring betrayals on the party out of the blue. #MasksOfNyarlathotep does this expertly.

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