The Mandarin wanted revenge. He started by interrupting a party of Tony Stark. He was tried to let Tony Stark destroy all his suits. But Tony Stark refused and put on one of his suits. The Mandarin waited, and after one hour he attacked Tony Stark's party. A bomb exploded. After a long fight, The Mandarin was defeated by Rhodes and Stark.
After the Mandarin had been defeated, The Mandarin was put in prison. His cell was opposite of Justin Hammer's cell. Justin Hammer and The Mandarin had a short conversation, and both agreed to work together to defeat Tony Stark.
Later, they had a short moment to go outside. There they met Carl Creel, a criminal that was also put in prison by The Avengers and Tony Stark. He also wanted to kill Tony Stark and joined them. Later, some other prisoners attacked them, and they started a fight. During the fight, The Mandarin killed one of the prisoners.
After the fight, The Mandarin was put in a no-light cell, where he was eventually freed by M.O.D.O.K.. The Mandarin also freed Justin Hammer and Carl Creel. After a long fight with guards and James Rhodes, they all escaped. During the fight, The Mandarin and M.O.D.O.K kidnapped James Rhodes. Also, Pepper Potts was later kidnapped by a henchman of The Mandarin
Later, The Mandarin forced Tony Stark to come to his place. Otherwise, he will kill both James Rhodes and Pepper Potts. Stark came later. The Mandarin wanted Stark to choose who would live and who would die. Tony Stark chose himself, and The Mandarin turned angry, and he shot Pepper Potts to death without mercy. Tony Stark was very angry and attacked The Mandarin with his new suit. The Mandarin fought well against this new suit but he was later defeated by James Rhodes. Later Stark was thinking about putting him in prison again, but he thought about what happened in prison the first time and what he did to Pepper. Stark was furious and shot The Mandarin also without mercy to death. The Mandarin fell death on the ground.