It depends on your group, generally. The rules give the authority to the person choosing, but that authority only extends to what the Hx question says -- the details and context are usually the result of collaboration between the other players involved (including the MC.) So the Hardholder can say that PC X stole something from them or betrayed them, but they don't necessarily get to decide which, or what the circumstances were.
My personal take is that the Hx setup gives the player choosing the authority to initiate something, unilaterally, but that ultimately the group and the other player need to confirm and engage with it before it really counts. Both sides of this equation are important -- the connection needs to initiate with the first player because the point is to give them a connection that is interesting to them, and it needs to be confirmed by the other affected players because otherwise it's not going to be much of a connection; they're going to be the only one of the two who thinks it's a cool thing to play around.
I stress the importance of both sides just because one extreme point on the 'how groups can approach Hx' is for the player whose turn it is to be like 'well it says here somebody betrayed me -- do any of you want to be that person?' Which is fine, if they honestly don't have a preference, but not good if they do actually kind of hope it's gonna be PC Y, but don't feel comfortable just saying so for whatever reason.
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Also, apparently in the new edition, this aspect of Hx has been totally overhauled, but I am not aware of the particular details.