Though the series remained a modest hit through the Gillis/Perlin run, it was cancelled to make room in Marvel's production schedule for the New Universe line. Perlin recounted that Potts tried to soften the blow by telling him and Gillis the news while treating them to lunch at an Indian restaurant. The final issue was "The New Defenders" #152. In the final issue, several members (Gargoyle, Moondragon and Valkyrie), plus allies (Andromeda, Manslaughter, Interloper) seemingly die in battle with the Dragon of the Moon controlling Moondragon. The remaining mutant members leave the team to join X-Factor. Gillis has claimed that killing off the other members of the group was a directive from the editorial staff to free up the surviving members for usage in "X-Factor", pointing out that he shortly after revived several of these seemingly-deceased members in issues of "Solo Avengers", in "Strange Tales" vol. 2 #5–7, followed by issues #3–4 of the relaunched "Doctor Strange, Sorcerer Supreme" series.