[2] Issues #20-22 handled "Dark Reign", the aftermath to Secret Invasion, and Christos Gage moved to full writing duties.
Pym and Gyrich agree to conceal the death and expel Armory, but first, amputate her alien weaponry, since she will be an unregistered super.
As Justice and Gauntlet clean up the situation, Pym is called to the lab where Baron Von Blitzschlag informs him and Henry Peter Gyrich of MVP's anatomy; instead of being enhanced by the Super Soldier Serum as everyone believed, he is actually an "Übermensch", the ultimate human specimen.
As Blitzschlag and Gyrich laud the benefits of such a test subject, Pym again has a crisis of conscience, only enhanced when the German scientist recounts his past "villainous" acts (such as the creation of Ultron) and remarks "I am your greatest fan.
Cloud 9 is revealed as the best marksman of the bunch when she receives a pulse rifle, but she feels guilty when she blows up a fighter jet and the pilot doesn't eject.
While Komodo fares much better, Spider-Man's wit, and a threat that her failure will cause her losing her powers, help him to defeat her and slip away easily.
A mysterious third party, which War Machine calls "Red Team" and which has been cloaked during the fight, is revealed to be a group of people in duplicate versions of Tony Stark's Spider-Man armor.
While in disguise, he sees MVP's body cryogenically frozen, but Justice and Cloud 9 claim to have seen him at his parents’ home.
[8] Several new Initiative recruits arrive at Camp Hammond, including Ant-Man (Eric O'Grady), Crusader (Z'Reg), Melee, Geldoff, Dragon Lord (Tako Shamara), Geiger, Red Nine, and Diamondback.
[10] A new Michael Van Patrick clone is fitted with the Tactigon, Armory's former alien weapon, but goes on a rampage throughout the base under the new name "KIA" seeking revenge for MVP's death.
[11] The KIA clone causes destruction, killing Dragon Lord (Tako Shamara), Trauma (who is later revealed to have survived) and Van (one of the Scarlet Spiders).
KIA also caused injury to many initiative trainees and staff like Thor Girl, Gauntlet, Constrictor and Crusader.
The graduating class and their assignments were: Justice, Debrii, Slapstick, Rage, MVP and the two remaining Scarlet Spiders left the Initiative to form Counter Force, described as a counter-initiative that will dedicate themselves to keeping the government program honest.
Sunstreak attempts to have relations with Butterball, who refuses and takes their ride and heads back to the camp but encounters Constrictor, Taskmaster, War Machine and Yellowjacket.
Although the recruits plan to use this distraction to sneak back on base, they instead help defeat Firebrand, King Cobra, Mister Hyde and Mauler, all of whom wanted revenge on the Taskmaster.
[16] 'Yellowjacket-Skrull' later gives orders to Gauntlet to dispatch the cadets to help the Young Avengers fight the Skrulls, and Proton is killed during the battle.
"[17][18] Meanwhile, Ant-Man, the only cadet still on Camp Hammond, witnessed how "Yellowjacket" welcomed a Skrull commander to the base and attempts to learn of their secret plans.
The Skrull Kill Crew thought they could not track through all the states on time, but then former Avenger Jocasta appeared with Devil-Slayer, who is a member of the Hawaiian Initiative team, the Point Men.
The Skrull then sends a broadcast throughout the world, telling their sleeper agents to activate themselves, which sows even more distrust among the remaining heroes.
[23] Those that had been replaced by Skrulls alongside Alicia Masters meet with Doc Samson at Camp Hammond as part of a support group.
While noting the hostilities of Red Nine, Annex, Geiger, Batwing, and Prodigy over the shooting of Crusader, Delroy states he is leaving the Initiative and joining up with Ryder to hunt down any Skrulls still hiding out on Earth.
Because of their villainous past, Sunstreak and Prodigy were not assigned to an Initiative State Team yet, but have to remain under training at Camp Hammond.
Meanwhile, Baron von Blitzschlag encountered the Thor-clone (now dubbed Ragnarok), which was reactivated by a failsafe programmed by the Hank Pym Skrull, which required his access code to keep him contained.
Ragnarok is about to vanquish Von Blitzschlag with pure physical force when the crafty Baron dismisses the notion as futile.
Blitzschlag tells Ragnarok that the real Thor is living in Asgard, which is now physically in the realm of Earth (or Midgard) where it is floating above Oklahoma.
He assigns the Force of Nature to Oregon, the U-Foes to North Carolina, the Psionex to Maryland and the Women Warriors to Delaware.
Gauntlet and Tigra leave their posts at the Initiative and join with the New Warriors to form the Avengers Resistance against Osborn's new regime.
[30] Osborn is pleased with Taskmaster and invites him to join the Cabal, while Constrictor is shocked to learn Diamondback is a double agent to the Avengers Resistance.
[32] During the "Fear Itself" storyline, the Initiative teams have gotten back together where their representatives meet with Prodigy in Washington, DC to discuss the hammers that the Serpent has brought to Earth.
[36] Batroc the Leaper previously worked out of the Virginia training facility, and was set to be moved to Camp Hammond as a Martial arts instructor.