A Lost Ship is found buried under a city, and the Universal Guardians seal off the area and get ready to investigate. Unfortunately their high command has buckled under pressure and has decided to let the Gazer Concern deal with it. The Gazer Concern of course is the front company of Nightmare, the big bad evil getting ready to spread through the universe. Kain and Canal also learn of this supposed new Lost Ship and head off to investigate. When Kain finally makes it into the underground lair, he's quickly assaulted by Kali and the two engage in a fast fight.
Rail manages to escape with the ship.
And the first time he encounters Kain, he proceeds to attack them. Rail's up to something, and his indictment at the Universal Guardians as a traitor really helps push that line of thought. And if things can't get any worse, the Nightmare decides its time to take over the universe. Their corporate security vessels quickly turn over into attacking fleets and starting taking over strategic areas of the galaxy. The Universal Guardians get smacked down at every oppurtunity and take huge losses.