The New Mutants had been transported to the spiritual home of the Demon Bear. The landscape resembled the plains near where Psyche had grown up. High above the beast floated a bubble through which Psyche's operation could be seen, and the unconscious bodies of Nurse Friedlander and Officer Corsi as the bear's hostages. Immediately the bear plunged it's long claws into the hostages. However, as they did not have mystical armour to protect them like Magik did, they were transformed into native American zombies.
The battle begun with Cannonball careering into the bear itself, and Magik attempting to bind the demonised Nurse Friedlander and Officer Corsi. The Demon Bear swatted Cannonball away. Spots of dark shadow spread across the landscape as the bear's power began to grow. Nurse Friedlander fired bolts of black lightning at Sunspot, while the Demon Bear ripped a hole into the operator theatre. One of the surgeons saw the strange claws and the desert landscape for an instant, but soon returned to his life-saving work.
Magik knew that if she used her spells to attack the bear then her wards around the operating theatre would weaken. She realised that it's power was growing everytime they physically attacked it. However, the Demon Bear's zombified servants were successfully distracting the New Mutants. Sunspot tried to stop Magma from permanently hurting Officer Corsi. However, he was soon caught in a lasso around the waist, thrown away by Officer Corsi and landed in one of the demon bear's magical night spots where Nurse Friedlander attacked him. Sunspot's powers weakened quicker than any normal nighttime, and Wolfsbane jumped to his defence. Magma began to attack Nurse Friedlander and commanded Wolfsbane to shift into something more human so she could drag Sunspot back into the sunlight.
However, when her back was turned then Demon Bear plunged it's claws into Magma. The effect was similar to that on Officer Corsi & Nurse Friedlander. Magma became a monstrous version of herself. Magik drew out her Soulsword and attacked the Demon Bear with it. Once the bear had been driven back, Magik then drove her Soulsword into Magma. Cannonball cried out and attacked Magik. He yelled that he should never have trusted her, as he dragged her along the ground. When he released Magik, her entire arm was covered in the mystical armour. Magma then jumped on Cannonball, calling him a 'Barbarian fool'. She had been cured by Magik's Soulsword. The Demon Bear soared in triumph as it watched the New Mutants fight amongst themselves.
The majority of the landscape was soon covered in the Demon Bear's night. Only a few patches of sunlight burst through the dark night sky. Magik remembered that the Demon Bear was afraid of Psyche, and demanded that Wolfsbane use her telepathic connection with Psyche to probe for more information. The bear continued to attack the bubble, trying to break in to the operating theatre. The attack caused Magik to fall in pain, so Magma created a volcano to protect Magik from Officer Corsi's attack. Sunspot & Cannonball were then distracted by Nurse Frielander. So when Wolfsbane transformed back into a girl and announced that she had the answer, Officer Corsi had snuck up behind her and knocked her unconscious. Magik then leapt to Wolfsbane's defence and drove the evil spirit out of Officer Corsi with her Soulsword. Magik then commanded Magma to create a fiery diversion. While the bear lurched in pain from Magma's attack, Cannonball carried Magik up to the bear's head where she promptly cut it down the centre with her Soulsword.
The Demon Bear was split into two halves. As the light slowly dispersed, two people walked down into the light.
The New Mutants were then transported back to the corridor outside the operating theatre. There Wolfsbane gasped as she saw that Nurse Friedlander and Officer Corsi were "still Red Indians". The man who had descended from the Demon Bear informed them that although the evil had been driven out of their bodies, they could not undo the bear's original transformation enchantment. Cannonball politely enquired to who the gentleman was, and he answered that he was the bear until he had been freed. Just then a surgeon appeared to silence all the ruckus. Psyche's father introduced himself and his wife as William and Peg Lonestar, and they enquired about their daughter's health. The surgeon gravely answered that Psyche was likely to be paralysed for the rest of her life. Just as the New Mutants began to despair, the Professor telepathically told them not to worry.
Psyche was transferred back to the mansion, were the Morlock's Healer had exhausted his powers on her. When she woke up, Storm re-assured her that she would make a full recovery in time. Psyche was then shocked by the arrival of her parents. They explained how they had been transformed into the Demon Bear, but were not able to track Psyche while her grandfather was still alive. After Black Eagle had been murdered by the Hellfire Club's goons the bear returned to their home, and began to track Psyche to New York. Unfortunately nobody had an answer as to why any of this had to happen, or who caused it. Magik revealed that there were no more spells remaining on Tom Corsi or Sharon Friedlander and Professor Xavier thought it would be another problem for Doctor Strange to handle. Professor Xavier then consoled his students by telling them how proud he was of what they had achieved that night.