REED DISCOVERS HIS FAMILY'S HIDDEN PAST - More refugees pour into the Mutant Underground, but the group faces a threat when they discover one of them is a spy working for Sentinel Services. Meanwhile, Reed visits his estranged father and learns that secrets from his family's past could prove useful. 
The underground rescue a group of refugees, but a telepath among them, Esme, reveals that another of the mutants to be a Hound. The latter is taken hostage, and Esme is able to help read her mind; they learn that she was taken hostage by Trask Industries, and their work on her included addicting her to the drug Kick. Reed and Thunderbird visit Reed's estranged father Otto, who used to work for Trask. Otto reveals that his father and aunt, Andreas and Andrea von Strucker, were the mutant terrorists Fenris. They had extremely powerful abilities, which they passed on to Otto; his work at Trask focused on suppressing the mutant X-gene, and he prevented Reed from developing these abilities. Lauren and Andy now have the same abilities as the von Struckers, and can become as powerful as them if their powers are combined. Campbell and SS agents arrive to interrogate Otto, and he attacks them with his abilities to protect Reed and Thunderbird. Otto is able to overcome Pulse's mutant suppressing, releasing a blast that injures Campbell and kills Pulse.