Chapter 12 and the conclusion of the Defenders vs. Avengers, and the return of the Black Knight. Continued from The Avengers #118
The Avengers and Defenders have beaten Dormammu and won control of the Evil Eye, a mystical object of great power.
Since the Defenders wish to remain unknown to the population at large, Dr. Strange casts a spell, with the assistance of the Eye, to make everyone--including Nick Fury, but not including the Avengers--forget about their existence. The Avengers think this is fine, and part with the Defenders as friends. Strange also fixes all the damage caused in the battle.
The Defenders return to Strange's Sanctum Sanctorum to figure out how to help the Black Knight, who has been turned into a stone statue. Strange uses the Evil Eye to travel to where the Knight's spirit once was kept, but it is no longer there. Suddenly, Strange and all the Defenders disappear.
They reappear in the 12th century in the Middle East, during the Crusades. The run into the Black Knight, who has been helping King Arthur's forces. Arthur has been captured, and his brother John is trying to take over.
They are attacked by Arabian warriors, but also by a giant earth gnome. It is somehow totally immune to attacks by Strange and the Silver Surfer, and out-muscles the Hulk. Strange teleports the Defenders away.
The Black Knight explains that he was brought to the past by Merlin, who merged his spirit with his ancestor's. He is trying to find Modred, who killed his ancestor and is allied with Prince John. Merlin's magic seemingly brought the Defenders back in time to help.
The Defenders join the Knight to infiltrate John's castle, to rescue Arthur. They get him, but are attacked by more giant gnomes. The Surfer, Valkyrie, and Hawkeye are unable to affect them and are knocked out. The Black Knight is able to hurt one with his Ebony Blade, but they knock him out too.
Namor, Hulk, and Strange happen upon John, Modred, and an Arabian sorcerer named Chandu. He is the one who is making the gnomes. Strange is defeated because the entities he normally calls upon don't know who he is in this time. Namor knocks one of the gnomes in the water, where it quickly dissipates, since it is an earth being. He quickly splashes a wave through the rest of the castle, and the otherwise-undefeatable qgnomes are defeated.
Prince John grabs the Evil Eye, and all seems lost anyway, but then Prester John, a magic knight, shows up. He sends John and Modred away, and takes the Eye. The Black Knight decides that he feels at home in the 12th century, so Prester John sends the others home to their time, and takes the Evil Eye himself.
At home, Namor, Surfer, and Hulk all say they are leaving the Defenders, and depart. Dr. Strange and Valkyrie are the two remaining Defenders.