During the confrontation, Sleepwalker pretended to destroy Rick's mind as a means of protecting him from Cobweb's minions. Unfortunately, the authorities retrieved the "mindrake" weapon Sleepwalker had used to store Rick's mind, preventing the alien from recovering it, also gathering up one of Cobweb's demons that was left behind after the Avengers drove them away. The demon and the mindrake were both taken to a federal prison and research facility where serial killer Jeremy Roscoe was also being held as part of a psychiatric experiment. Roscoe staged an escape from the prison hospital and became fused with the demon in the process, transforming into a nightmarish creature calling himself Psyko. The monster began spreading mass insanity across New York, until Sleepwalker managed to defeat him and retrieve the mindrake Psyko had taken with him.