While with the New Mutants, Moonstar starts to have nightmares again about the Demon Bear, who until then had been kept from her due to Black Eagle's protective spells. Her fear over the entity causes her to contemplate suicide. One night, she attacks the entity and is taken to the hospital. The other New Mutants wait for her in the hospital and are tracked down by the Bear. Its magics affect the team, drawing them into another dimension. The New Mutant Magik pierces the Demon Bear with her magical sword, and it reverts to its original form: William and Peg Lonestar. Dani is reunited with her parents, but decides to stay at Xavier's school. They develop an intense rivalry with the Hellions, a super-powered team of young mutants led by the White Queen. This rivalry is later somewhat cooled when Danielle bonds with the Hellions's leader, Thunderbird.