History
The history of this incarnation of Phillip Masters is unknown, but believed to be identical to that of his Earth-616 counterpart.
As part of a new plan to defeat his enemies, he hired The Ghost to break into Stark Tower and steal a cyber-neural interface chip for him. Upon receiving the chip, Puppet Masters double crossed The Ghost by breaking a clay statue of him...and thus the Ghost as well.[1]
By combining the stolen chip with his psychokinetic clay, Puppet Master gained the ability to take control over inanimate objects like powered armors. He tested this new ability by hijacking the armor of Titanium Man. When the test proved successful he moved on to his real plan; take control of all of Tony Stark's armors that were on display at the New York Museum.[2]
With Power Pack's help, Tony was able to stop the rampaging armors, and then track down Puppet Master himself. Using puppets of the four young heroes, Puppet Master turned Power Pack against Tony, forcing him to fight them off. Tony was able to hold them off until he could break Puppet Masters control. The villain was then arrested and presumably brought to prison.[3]