Continued from X-Factor #60. A political war is waging both outside and inside of Genosha. Tensions mount, as Cameron Hodge continues his quest to subdue the X-Men. Meanwhile, Wolverine, Jubilee, and Psylocke join the fray in an attempt to free their comrades, an attempt that already seems too late because the Genegineer has already begun the process of turning a teammate into a Genoshan mutate.
Story continues in New Mutants #96.
A reporter announces that military ships have been positioned in the Indian Ocean as the United States calls for economic, as well as diplomatic, sanctions on Genosha. Genosha's president reaffirms her country's stance on the X-Men: they must be punished. In Genosha, Boom-Boom and Rictor have found each other and are currently fleeing from Chief Magistrate Tam and her forces. Tam aims to kill, but she is thwarted by a blind-side attack from Jubilee. Wolverine, Psylocke, and Jubilee attack the Magistrates while their down, but Tam proves to be a difficult opponent. Nearly killing Wolverine, Psylocke ends up putting a psi-blade through Tam's head. With the fight over (and Wolverine failing to recover quickly), Psylocke looks into the minds of the New Mutants to find out what has been happening. She senses the presence of the rest of the X-Men, as well as X-Factor, and she and Wolverine head to the Citadel to help in any way they can. Much to Jubilee's dismay, she's stuck with Boom-Boom and Rictor.
On television, the Genegineer debates the ethics of Genosha's abducting of the young mutants with Moira MacTaggart with Manoli Wetherell as moderator. Moira doesn't come off too well, seeing as how Wolfsbane, one of the captured, is her charge. The Genegineer crafts his way around every question, holding that Genosha has done no wrong. Once the broadcast is over, the Genegineer walks with Chief Magistrate Anderson and the two discuss policy and the effects of Cameron Hodge. While neither like the man, neither feels the need to let off the attack on the X-Men. Later, the Genegineer laments in his office the fact that his son has become a traitor. Storm finds him and, with a knife, threatens to kill him. Before any action can be taken, however, Hodge shows up. Hodge pins Storm to the wall and moves in for the kill. He is stopped by the Genegineer and the President of Genosha. Storm's mutagenic signature, they state, would best be served as a mutate serving the country. Hodge agrees and the Genegineer promises the mutate process will begin immediately on Storm.
Wolverine and Psylocke have changed into Magistrate clothes are are flying to the Citadel. As they chat, Psylocke is hit with agonizing pictures of Storm in pain. At that moment, Storm is going through the mutate process and her rapport with Psylocke has linked the two. Psylocke's personal carrier goes down, with Wolverine jumping after it. After crashing, an emergency transport shows up and Wolverine orders the help to take them straight to the Genegineer to fix up Psylocke. Not suspecting anything, the emergency responders fly straight to the Citadel. Once inside, Wolverine and Psylocke are directed to the Genegineer's office. Before they can get there, they are stopped by Havok. He's heard report that his lady, Tam, has been injured. The emergency responder states that Psylocke is Tam. The bluff is up and Wolverine confronts Havok. The two fight until Psylocke puts an end to it by putting a psi-blade into Havok's head. The two begin searching the Citadel when they are confronted by Hodge. As a battle breaks out, the Genegineer runs a customized program on Storm. In the battle, Wolverine and Psylocke both give Hodge all they've got; Psylocke even tries a psi-blade. Unfortunately, Hodge has a more effective psi-attack and the two are soon in his clutches. Just then, the Genegineer announces that the transmode process is complete: Storm is now a mutate.