Following the trail, they were attacked by Dave, a corrupt cop in the employ of the Skull Cross Gang. The quartet headed to the Police Station where a breakout had just occurred in lockup. Haggar, pressed for time, accepted the stranger's help, but threatened to grind him into dust if it was a trap.

Before Haggar, Guy, and Lucia could make their next move in having to face and handle the impromptu situation at hand, an unknown stranger had suddenly appeared before the trio, offering his assistance and saying that he knew what was going on at the moment. Detective Lucia Morgan of the Special Crimes Unit rushed in and informed Haggar that a huge riot had broken out in the center of town. Several months later, Mayor Mike Haggar was in his office speaking with his old friend Guy when an unexpected explosion had suddenly and shockingly rocked Metro City. Eventually, the Skull Cross Gang, who were once a subordinate sub-group of Mad Gear had won and defeated the other local street gangs so that they could then establish themselves as the new dominant criminal organization of Metro City, wasting no time in planning and making their own criminal activities to seize and obtain total control of the city.

After the complete destruction of the Mad Gear Gang in the previous game, the power vacuum of Metro City's criminal underworld, which was left behind by Mad Gear after its final downfall, had caused the other local street gangs of Metro City to fight and battle against each other and one another for both total dominance and supremacy.

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