Cloud undergoes a physical transformation and reveals a shocking secret concerning Moondragon. The Defenders must battle a ghost of Gargoyle!
Gargoyle was mystically summoned and captured last issue by a sorcerer and is trapped at his castle's dungeon. Gargoyle tries to explain that he is only a man but with no response. He realizes that since he has a demon's body, he can be controlled by spells that would affect a demon. The man demands that he produce gold, and using a pentagram really makes Gargoyle produce gold by punching the ground. Then the sorcerer, who works for the Afghanistan soldiers who at the time are fighting the Russians, forces Gargoyle to destroy a squad of the Russians' soldiers. When the sorcerer's own side disrespects him, he has Gargoyle kill them too.
At Angel's aerie, Cloud is having a real dream about Moondragon and their love, which Cloud is still conflicted about due to its gay nature. Moondragon believes the dream was caused by a side-effect of her powers, but Cloud thinks it was real. Cloud transforms herself into a guy and enters Moondragon's room, saying that now they can love each other without guilt. The other Defenders enter the room because of Moondragon's scream and they see Cloud transformed into a guy. Everyone is shocked, especially Iceman.
Back at the castle, the sorcerer goes to the Soviet headquarters and uses Gargoyle's powers to torture their leaders. But then Gargoyle manages to trick him into going to United States. They first go to New York, but the sorcerer senses Dr. Strange and demands that Gargoyle take them to the Rocky Mountains, just as Gargoyle had hoped.
Meanwhile the Defenders are over their shock and try to calm Cloud. Iceman is the only one who can't handle her new gender (due to his feeling about "her," and he makes her feel even worse about her identity now. Moondragon senses Gargoyle's presence, however, and they fly off to his position, where they find the sorcerer and a giant Gargoyle under his control.
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