Note: Events in this issue follow directly from the New Mutants' resurrection in Secret Wars II #9.
The New Mutants easily defeated a group of Sentinels. Almost immediately they were faced with the White Queen & her Hellions. During the fight Karma possessed Jatstream, sending him colliding into the White Qeeen. Empath commanded Magik to teleport them to Limbo where she revealed her dark side, while on Earth Mirage's power produced an image of Tarot's true desire which resulted in the Hellion kissing a mysteriously tall New Mutant with black hair. Magneto demanded that the training session had ended and sent them to bed. They then peeled away their uniforms. Warlock wore Cypher's body, while Cypher was made completely of circuitry from the neck-down. The New Mutants bade each other a good night and climbed into graves marked with each of their names.
In the morning Magneto confessed to Sharon Friedlander that he'd had the dream again. He knew that he was psychically receiving the dream from the New Mutants, and that it was an after effect of their encounter with the Beyonder (see New Mutants #37 and Secret Wars II #9 for further details). When the New Mutants arrive for breakfast Sharon offered to cook anything they wanted, but they all refused breakfast. They all sat in depressed silence until Tom Corsi arrived. He asked Magma for her help to clear snow from the driveway. She agreed, but Tom saw how there was no change in the New Mutants' condition.
That evening, Magneto poured himself an alcoholic drink to unwind. However, a match was struck in the dark, revealing the White Queen sat at his desk. `they were non-courteous to each other, but the White Queen made her intentions clear. She offered Magneto a chance to help the New Mutants. She would be willing to accept them as students in the Massachusetts Academy, but Magneto refused her offer.
The next day he grew increasingly frustrated. During a Danger Room session Cannonball didn't care that his performance had decreased to level of when he first joined the school. In dance class Magneto chastised the students for not putting their heart into the routine. It drove Magik to teleport to Limbo, and caused Stevie Hunter to berate him for interfering with her lessons.
Out in the stable, Mirage consoled herself in Brightwind's company. Suddenly Brightwind began to bow in reverence to a frog. Just as Mirage began to puzzle over what she was seeing, the frog began to glow. Suddenly Thor began to address her. He told her that a warrior's greatest enemy was despair and that she must overcome it. Thor's image vanished and the frog went to hop away. Mirage begged him to stay, offering him help t otransform him to normal. However, Brightwind blocked her way making it clear that Thor didn't need her help, but had paid her a visit to give Mirage help.
At the weekend the New Mutants attended a dance at Salem Centre High School. Still distant, the other kids mistook their trauma for snobbish attitudes. The principle of Salem High addressed Magneto s Michael Xavier, an identity that Professor Xavier had left for him. She enquired after Charles Xavier's health, and offered Magneto any assistance with the sudents should he need it.
The next day, Magneto thought about Mirage might not return from her visit to see her parents. As he sat down his chair began to change and talk. He attacked Warlock, but immediately apologised for old habits. He enquired as to why Warlock wasn't lethargic & apathetic like the others. Warlock did not know, as he recalled that he didn't exist & then he did in very simple terms. Warlock transformed back into Magneto's chair at the arrival of Cypher's parents. They didn't know about the school's true mission to help young mutants. Instead they were concerned that Cypher's decline in mental health might have something to with the school's recent change in administration.
The meeting was being spied on from outside. Empath had been watching Magneto when he was confronted by Tom Corsi & Sharon Friedlander. Tom recognised Empath from Xaviers files on the Hellions, and was about to throw him off the grounds when Empath used his powers on them. Suddenly Sharon & Tom were consumed with an over-riding passion. They immediately kissed and dropped to the floor. While they began to make love in the snow, Empath returned to watching Magneto, filling him with despair & self-doubt.
In the morning, Magneto called the students together for a meeting with him and the White Queen. He announced that they were all to be transferred to the Massachusetts Academy and Xavier's School for the Gifted was to be closed immediately. Mirage was the only one who objected. Magneto accepted defeat as the other students left his office with the White Queen.
Note: The cover to this issue was used as a basis for the cover to New X-Men #27, where the Purifiers kills dozens of members of the Xavier Institute.