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In a battle between Nitro and the New Warriors, Nitro exploded, seemingly killing the entire team and a huge number of civilians (including 60 school children nearby).
Numerous members of the superhero community arrived on the scene to search for survivors. The inactive New Warriors were widely regarded as "baby killers" by association. He felt that heroes needed to be above direct government control, because when politicians could control the heroes, they could decide who the villains were. Even Stark unmasked himself as Iron Man (for the second time in his career), and admitted to previous attempts to hide his identity.
Initially conflicted, he happened to meet a fleeing Aegis (Trey Rollins), who was being pursued by capekillers after stopping a purse-snatcher.