Note: Although the New Mutants only briefly appeared in it, this follows events from Uncanny X-Men #200.

After returning from Asgard, the New Mutants are stunned to discover that Magneto has been appointed their new headmaster. The team is sharply divided over whether he can be trusted, with Sunspot openly hostile while others argue that people deserve second chances. Personal tensions flare as each member reacts to the change, and Magneto wastes no time asserting authority by ordering a Danger Room session.

Magneto challenges the team to defeat him in combat, a task that quickly proves impossible. One by one, the New Mutants’ abilities are neutralized, leaving them trapped and frustrated. The exercise highlights both Magneto's overwhelming power and the team’s lack of cohesion under his leadership.

Later, the group continues their debate over burgers at Harry’s Hideout, still uncertain about their new mentor. Mirage chooses to walk home alone rather than ride back with the others, and she is attacked by a group of men in a dark alley. Brightwind's sudden arrival drives the attackers away, leaving Mirage shaken but alive.

When Magneto learns what happened, he tracks the men down and confronts them, demonstrating both ruthless efficiency and restraint. The New Mutants witness his response and see a more complex side of him -- one capable of protection as well as intimidation. Back at the school, Magneto quietly sends the team to bed without punishment. By the end of the night, even Sunspot begins to question whether his distrust of Magneto was justified.

Note: Although the New Mutants have a minor appearance, the events of Uncanny X-Men #202 take place after this issue, and are connected to Sunspot's behaviour in New Mutants #36.