Trauma joined this initiative with fellow recruit, Komodo, Hardball, Cloud 9, and now deceased MVP. Trauma is the outcast of the group being the only one who cannot understand or control his powers. Henry Gyrich, and Yellowjacket both assigned depowered mutant, Dani Moonstar, to train Trauma and teach him how to use his powers because she was formerly able to sense peoples fears before she was depowered on M day. Trauma shows resentment to Dani and all of the other people in Camp Hammond. He seems to be a difficult but good asset to the team. In The initiative #4 and #5, Trauma is revealed to be apart of a special task force for the Initiative, named by Henry Gyrich as 'The Shadow Initiative. By issue #5 Trauma is shown in full control of his powers thanks to coaching from Dani Moonstar, who goes on to say he could possibly become the worlds greatest behavior therapist, helping people overcome their greatest fears, one step at a time. However Trauma has been called an "Omega level threat" by Gyrich, and that he could be one of the few people alive that could stand up to the Hulk. However in the course battle with the Hulk it turns out he is unable to manifest as anything the Hulk fears, as the Hulk in his current state doesn't fear anything. It is after this that Gyrich drops him down to a Class 50 mutant. In issue #9, when a MVP clone was granted the tactigon previously removed from armory, he accidentally saw on screen the real MVP die. When starting to go crazy, he went into "his" file and saw the KIA stamped on top of MVP's picture and carved those letters into his chest. He vowed to kill all that saw "him" die and started on a rampage. Towards the end of the issue, Terrance shapeshifted into the tactigons worst enemy, only resulting in the clone laughing at him saying its not his fear. The clone then apparently killed Terrance.
After that attack, during his funeral on the base Trauma got up out of his coffin while everyone was at his wake. Trying to learn more about his condition he stayed behind at Camp Hammond while his friends went other ways. During World War Hulk he faced Korg, transforming into Thor. This led to Thor Girl developing a crush on him.
During the Secret Invasion he was attacked by rest of the Shadow Initiative and taken captive. When the Skrulls were defeated Trauma was disappointed to find that the Thor Girl who had had a crush on him was actually a Skrull, and that the real Thor Girl was not so easily impressed by his transforming into Thor.
He was forced to join the Shadow Initiative.
In the Avengers: Initiative Annual, the Hood revealed that Nightmare is his biological father, and is forced to work for Norman Osborne. He was assigned Penance as his patient but was instructed to not do anything to actually assist his mental state. The stress of the situation allows his father to possess him while the Avengers Resistance attacks the camp. Nightmare incapacitates Penance by restoring his memories, flooding him with guilt. Nightmare is eventually defeated and Trauma regains control of his body and leaves the Initiative. After the defeat of Norman Osborn Trauma is reported to either be working with Doctor Strange or looking for a man named Carl in New Orleans.
Trauma has the ability to sense peoples fear, and shapeshift into that form. Henry Gyrich describes him as a "Shapeshifter that can read minds". It is revealed that Gyrich sees this as one of their "Holy Grail" of powers.
It is shown in The Initiative #5 that he is in full control of his powers, and can even control the extent of which he harnesses it.