After the defeat of the Theraxian Vanguard, they were locked in the same U.S. Government holding facility as Ultimate. However, their unique energy allowed them to compromise the system and break out, and in the process of doing so, Ultimate was released as well.
With the imminent threat of Ultimate and the Theraxians being loose, the U.S. Government started a black ops agency with the sole purpose of doing "whatever is necessary". This black ops group started with the plan to make a deal with Teleios, to have him make a chemical agent strong enough to incapacitate, if not kill, Vitality. Their hope was that if this chemical agent could stop Vitality, it could also stop Ultimate.
With everything in place on Teleios' end, the agency lured Vitality into a hostile area under the guise of requesting his help to take out a VIPER base. Vitality was attacked and incapacitated by the chemical agent and taken by Teleios. Teleios boasted to Vitality the truth about making the deal with the "government" to enact this plan. Instead of killing Vitality outright, Teleios kept him locked up to drain him of his blood for his experiments. However, the rest of Delta were able to track Vitality down and save him before he could be killed.
With their first plan being a failure, and knowing that they alienated Vitality by it, the black ops agency decided to restart a failed government project to create superhumans they could control. The project, named Cyber-Refine, was started to make the cyberline serum better. They wanted it to make their subjects more powerful, and make the serum permanent. However, it was officially shut down when all the initial subjects died of tissue and neural decay. They found the doctor who worked on the initial project, and he found a way to make it work. Using people with dead tissue.
Storyline: The Breakout
Storyline: Are you having fun yet?