Mandarin has the X-Men helpless…basically holding them hostage to convince Magneto to throw in with him. Mandarin has assembled some truly world shaking devices from the remains of Magneto’s old headquarters, but he needs Magneto to make them work effectively. Magneto reluctantly agrees.
The Avengers with some help from the Super-Soldiers launch an attack against the Mandarin’s fortress stronghold. Mandarin throws the kitchen sink at them, besides the Titanium Man, the Crimson Dynamo is also secretly in his employ…and he has the X-Men mesmerized by the power of his rings as well.
The Avengers make mincemeat of the stuff the Mandarin throws at them in a BIG DEAL battle. Magneto takes advantage of this to release the X-Men from the Mandarin’s hold and start turning the tables on the Mandarin. But, from the looks of things, magneto could be intending to use the equipment (which he was so hot to recover, remember) to do a little world shaking himself. Any such intent on Magneto’s part is thwarted by a counter-attack of the Mandarin, amid all the confusion of the battling Avengers and X-Men.
Mandarin and Magneto apparently perish in an explosion which levels the Mandarin’s fortress. Avengers (with Super-Soldiers) and X-Men are left declaring a truce. Avengers are able to point out that Magneto was apparently going to use his equipment to do bad nastiness…X-Men stand up for Magneto, but privately they have many worrying doubts. After the Soviets depart, the Avengers also express doubts that Magneto and Mandarin actually perished (Mandarin had used teleportation after all)…Avengers tell the X_men that if magneto does live, and if they ever get wind that he’s operating with them, they’ll cover after the X-Men again! Cap and the others are determined to see to it that a fugitive from justice such as Magneto go to trial and – if found guilty – pay for his crimes! They hammer home the point to the X-Men that until Magneto faces justice, there is little chance of ever ending the world’s anti-mutant hysteria!