The Emperor finally revealed a plan which sent ripples through the power wielder community. A new, robotic police force had been born with the power to enforce laws where the powerful had been traipsing about before. The Imperial Mechanized Police units had been born.

Piloted remotely and well armed with easily repairable and replaceable equipment, the IMPs put the squeeze on the unruly quarter of the powered populous. For a while, it seemed like the world had decided to entirely forsake their gifted saviors, for even the most benevolent of them were being attacked for trivial crimes. They had been used to simply apologizing for their acts, but now they were criminals. Within just a week, more than a hundred power wielders were confined in a computerized, virtual prison. What could the fighters of Earth do? To fight back would only prove the Emperor's point that they had no self-control, and knew nothing but violence and death. Worse, it would prove that they didn't care about the people they had been protecting all this time, after all.

This plight had been slowly grating against the power wielders, when a new dilemma presented itself. South City had disappeared in an enormous, mysterious cloud of poisonous gas. The cloud burned and melted at anything that entered it.

Then, the strange bug creatures attacked. East City was laid to siege by a large army of beetle-like creatures, set on trampling the cities in a scene that closely resembled a bad 70s horror movie. The IMP found themselves quickly overrun, despite the Emperor's pride that they would outdate the need for freelance fighters to fight against foreign foes. The fighters swept in soon after, however, and quickly cleaned up the ugly scene before much damage at all was caused.

Shortly later, the commander of the strange alien army, calling herself Euir Kindig, took command of the broadcasting media of the world and made her message. Unlike the creatures sent, she seemed largely human, with a few distinguishingly alien features. Discouraged by the decisive loss at East, she insisted a deciding match for Earth between herself and Earth's greatest fighter ... to which the great Neo Kame-taught Shao Lung accepted, without hesitation.

Shao was admitted into South City for an epic fight felt for miles around. When he emerged victorious, however, the fog over the city did not rescind. Additionally, Shao began to act very strange, becoming agitated toward his friends and attacking his own fiancee. It became painfully clear that they had become deceived when Shao was sighted leading a greater army of the monsters into West City. They had much greater progress this time, at the Human's command, surging straight into the downtown depths and ripping buildings to pieces. The IMP that came to attack barely made a dent in their forces, and the power wielders continued to struggle against the massive army that bore down upon them.

Soon, the army was destroyed, however, and it came down to a fight between Shao Lung and a handful of weaker fighters, who vainly tried to stop Shao from continuing the destruction his army had started. It was in vain, and the victorious Lung decided to spare the humans their city, simply permitting them to think upon the fact that they were incapable of defending against him. Shao was later found by his former mentor, Raimei Roshi-ni, who destroyed the alien technology implanted in his head, which was controlling him.

Meanwhile, fighters in another part of the world attempted to make way through the poisonous fog. Inventive mages tested the properties of the gas, finding ways to shield effectively from it's corrosive properties. There had to be some way, they knew -- a creature had been seen entering and exiting the gas without any apparent harmful effect.

They found out quickly who the creature was, however, as it ambushed them. It was the head of the alien army, a creature known only as the Big Gold. It maniacally dealt with the fighters with simplistic ease, sending them flying for their lives, and forcing research against the fog to halt. Twice did this monstrosity repel potential invaders, even when the "big guns" were brought out.

It all fell apart the very next day, on an anticlimactic note. In the matter of an hour, a new, super-elite squad of IMP, called the Ceta Unit, swept into the fog unphased, and annihilated every alien creature inside. A combined attack made short work of Big Gold, herself. So ended the Golden Dawn, possibly before it ever began.