The heroes failed to defeat the Skrulls, and now they co-exist. On the one year anniversary of the Skrulls' victory, celebrations are held to celebrate the cohabitation of the two species. The Skrulls give humans the option of changing their genetic destiny in a process known as "conversion." Those who undergo the conversion gain the shapeshifting abilities of the Skrulls.
Opposing the Skrulls is the Avengers Alliance for Freedom, which the Skrulls and their supporters see as a terrorist organization. At that time the only nation which resisted inter-species cohabitation was Wakanda. A conversion temple was destroyed in an act of terrorism in Switzerland which killed nearly a 100. The suicide bomber was an Avenger, Marvel Boy who in claimed his action in the name of Wakanda. The Skrulls accused the Avengers of terrorism and Wakanda of supporting terrorism. In a pirate broadcast the Avengers Alliance for Freedom denied responsibility and accused the Skrulls of lying.
The Skrulls had eliminated war, poverty, famine, and pestilence. Crime had decreased across the world, with those who had gone conversion having committed no crimes. Queen Veranke could not understand why some humans still resisted and opposed what the Earth had gained from Skrull rule. Her consort Norman Osborne who underwent the conversion explained to her human nature and their experience with those who promised an utopia. Super-Skrulls using Sentinel tech wiped out the X-Men in an attempt to destroy the Skrull-laced Legacy Virus which they had used to force the Skrulls' retreat from San Francisco, earlier during the invasion. Only Wolverine survived and made it to Wakanda with a sample of the virus.
The Avengers were planning to modify the virus to reverse conversion and eliminate the Skrulls' shapeshifting abilities. Queen Veranke went to the United Nations, accusing Wakanda of terrorism and demanding the surrender of Wakanda and the abdication of its rulers within 48 hours, or they would face a full-scale invasion. Within a few hours of the deadline, the Avengers managed to rewrite the DNA of the virus using nanites.
The Skrulls found the Avengers' location and they were attacked by a combined force of Super Skrulls and former human super heroes. Thor dispersed the vaccine throughout the world. Nearly instantaneously the effects appeared, as billions died (both the Skrulls and those humans who underwent conversion). The Avengers were horrified by what happened, only to discover that the man wearing Iron Man's suit was actually Norman Osborn. Who upon finding out about their plan, changed the vaccine into a lethal virus. The only human who had undergone conversion and was inoculated against by the vaccine was Osborn himself. In anger Captain America killed Osborne, after which the Avengers surrendered to UN forces.
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