Complex sentence: While he is in Okinawa the police crack down on the cult and arrest His Serendipity, an act which shocks Quasar, who has been led to believe that His Serendipity has the power to teleport himself and walk through solid walls.
Split into simpler sentences: While he is in Okinawa the police crack down on the cult and arrest His Serendipity. Quasar is shocked by this, since he believes that His Serendipity has the power to teleport himself and walk through solid walls.