Sabretooth has been half-imprisoned, half-“being rehabilitated” at the mansion.
The power goes out, and he escapes.
Emma Frost is also being cared for at the mansion–she’s in a coma–and Iceman protects her from sparks during the power surge by shielding her body with his own. They both get hit by the electrical blast that, it turns out, is actually Shi’Ar energy.
It enables Emma to take control of Iceman’s mind.
At the same time, Yukio and Ororro meet up in New York–after Yukio asks for help.
They get attacked by Phalanx creatures. Gambit arrives to help, but Yukio can smell a criminal (takes one to know one), and doesn’t trust him…
During the battle, we see them assimilate a civilian.
I think this is the first time we see that the techno creatures are called Phalanx and actually absorb humans. We also learn that their anti-mutant efforts are being coordinated by Steven Lang–one of the creators of the Sentinels–and Cameron Hodge.
We also see that Doug Ramsey/Warlock have been assimilated (even though they were dead). Note how the writers clearly intended that this was a creation of Phalanx–not the actual characters–but this later will be retconned to make them really be a merged Doug and Warlock.
And blowing them the hell up.