Note: Although the New Mutants only briefly appeared in it, this follows events from Uncanny X-Men #200.
Having returned from Asgard, the New Mutants were surprised to meet their new Head Master; Magneto. Most of them weren't sure if they could trust him, and Sunspot was the most vocal to distrust him. Magneto then ordered them to prepare for a Danger Room session.
In the locker rooms they all discussed the new changes:
Sunspot was still outraged, while Cannonball believed in second chances. Cypher made a comment about how Sunspot could join his father in the Hellfire Club which caused a fight. Cannonball quickly diffused the situation before Warlock freaked out.
Mirage was depressed as she had hoped to discuss her recent change into a Valkyrie with Professor Xavier. Magik supported Magneto saying that they had accepted her despite being a demon sorceress, while Magma compared him to her own father. Karma wasn't so convinced, but they all entered the Danger Room before Wolfsbane could say anything.
Magneto also changed into his purple outfit. He read a letter from Lee Forreter and he was surprised at how much he missed her. As they all entered the Danger Room, he commanded that Cypher should go into the observation room, which angered Cypher who was already frustrated by his passive powers.
The challenge was simple, the New Mutants had to defeat Magneto in combat. Cannonball was the first to attack, but he was soon wrapped in metal & unable to fly any more. Cypher decided to create an environment in the Danger Room to distract Magneto, but instead the girls struggled not to fall asleep in the poppy fields of Oz. Outside the Emerald City, Magma melted the metal casing off Cannonball. Warlock's attack on Magneto was short-lived, since he was completely constructed out of living circuitry that melted in a magnetic attack. Karma was unable to possess Magneto's mind, and ultimately the whole team was caught in a giant metal box.
Later, then debated their new Head Master over burgers & fries in Harry's Hideout. They were all undecided, and Sunspot intimated that he would leave the team. When they left, Mirage decided to take her time and walk back instead of getting a lift in Sharon's car. A local group of guys over heard and followed her.
As Mirage walked through the dark lane, the men from the bar jumped on her. Two of them held her down, while a third came running up. She bit his hand, so he slapped her across the face. They were interrupted by Brightwind's sudden appearance. The men ran into their car & drove away, but not before Brightwind kicked the headlights out with his front hooves.
Brightwind carried Mirage back to the mansion. Sharon Friedlander rushed Mirage into the infirmary. Magneto wondered why Brightwind was so enraged, when Tom Corsi spotted the flecks of car paint on Brightwind's hooves. Inside the New Mutants were woken by Cannonball who alerted them to the attack. Wolfsbane used her telepathic link with Mirage to learn of her three attackers. Then they spotted Magneto flying into the night, following Brightwind to exact their revenge.
The New Mutants followed inside Warlock who acted as a helicopter. Magneto located the men to a college fraternity house. There he destroyed the hinges on the door and marched inside. The men who had attacked Mirage were armed with a crowbar and a gun, but Magnteo immediately turned the weapons into pins and bonds to hold the men against the wall. They wouldn't listen to his threats so Magneto used his power to dismantle the house from around them.
Outside, the New Mutants marvelled at Magneto's show of strength. Inside, Magneto spared the lives of Mirage's attackers, but warned them that he wouldn't be so generous the next time they harmed anyone. As soon as Magneto had left, one of them reached for the telephone to hand himself in to the authorities.
Back at the school the New Mutants attempted to sneak back in without Magneto noticing that they'd been missing. He caught them as they were going up stairs. They thought they were in trouble, but he merely told them not to wake Mirage and go to bed. As they went upstairs, Magik chastised Sunspot for his earlier misgivings of Magneto, to which he conceded that maybe he had been wrong.
Note: Although the New Mutants have a minor appearance, the events of Uncanny X-Men #202 take place after this issue, and are connected to Sunspot's behaviour in New Mutants #36.