January 1, 796 S.C. / 487 I.C.: in the Astarte star system, a 20 000 spaceships Imperial fleet under Reinhard von Lohengramm's command is about to be cornered by three Alliance fleets of 13 000 spaceships each. Against the advice of his subordinates, Reinhard decides to strike first in order to defeat each fleet before they can join. The Allied commanders, trusting the overall odds of 2 to 1, don't anticipate this and rebuff Yang Wen-li's advice to quickly regroup their forces.

May, 14, 796 S.C. / 487 I.C.: a fake imperial spaceship docks into Iserlohn. Walter von Schenkopp, commander of the Rosen Ritter, pretends to have important information and takes control of the center of command. The Iserlohn fleet comes back, only to be destroyed by the fortress' main weapon, the "Thor's Hammer". The fall of Iserlohn dramatically changes the strategic balance: Yang hopes it will lead to a peace treaty. Back in Heinessen, he wants to resign, but is promoted to vice-admiral instead.