It absolutely has a concept of right or wrong. Ask it basic true or false questions and it will get them right most of the time.

In fact I asked it for grammar mistakes in your post and it noticed you used the incorrect for of "its" in your 3rd paragraph, and used "anyways" when it should be "anyway".

Seems like it knows right from wrong.

>It doesn't reason between sources.

It doesn't have access to source, it only has access to its own memory.

This is like if you asked me a question and I answered correctly, then you asked for sources and I tried to remember where I got it from. I could tell you sources that I think are right but are actually wrong due to my own memory degradation. Human memory is also very unreliable, but they're very good at making up things that "sound" like they could be right to them.

People "hallucinate" facts all the time.