The group fell under a sort of psychosis, the fear in their minds seeming real, and thus becoming so. Psychosis is an incredibly dangerous Menace, but wasn't always. He started as an APF alt human officer, having extensive telepathic traits. Psychosis is able to project his own brain waves like a radio tower, controlling what people see, hear, experience ; he can even plant ideas in people's heads. As time went on, his signal began to be polluted, by projecting his brain waves, Psychosis unintentionally turned his mind into a receiver dish, and suddenly the thoughts and personalities of others were muddying his own. When he met Mr. Infinity, the final seed was planted, and Psychosis began working as a double agent. It would be years before he was found out by his partner, and thrown in jail, but the cell wasn't beyond Infinity's reach... Psychosis is more than happy to help sow chaos and turn a Cape's world upside down, mentally, and thus literally.
