Gypsy serves a rebel faction in the republic of Coste Verde, where she entranced both Thor and Firelord to fight on the side of the rebels. cf. The Mighty Thor vol. 1:246,247.
Her "Mind-Jewel" fell from the heavens and had been passed down from mother to daughter for generations. The jewel was destroyed, when Jane Foster beat Gypsy in a duel of knives and cast the jewel in a nearby fire. Firelord retrieved the artifact and crushed it, so it could never be used again.
What happened to Gypsy after that isn't quite clear. The other rebels were caught up in a whirlwind and transported into the care of the government's soldiers... but there was no sign of Gypsy among them.