The facility director for the company waste disposal facility on an island in the Atlantic Ocean belonging to Umbrella HQ's R&D division until the late 1990s, Morpheus was used as a scapegoat for the outbreak at the Arklay Laboratory in May 1998, and fired for "gross negligence".[notes 1] Bitter and resentful, Morpheus distanced himself from the company, sinking into madness with the idea of revenge in mind. Plotting his vengeance, Morpheus enlisted the help of a number of others under his goal of establishing a new world order in Africa. A missile-base was constructed underwater in the Atlantic Ocean, just underneath the abandoned B.O.W. disposal facility; this was completely unknown to Umbrella, which had been running tabs on Morpheus since his suspension.
He was utterly obsessed with beauty and grace, his ultimate ambition being to create a beautiful and elegant world by destroying the cold and ugly world which exists today. Being a megalomaniac and highly narcissistic, Morpheus believed himself to be a portrait of perfect beauty and underwent reconstructive surgery to maintain his youthful appearance.
On September 18, 2002, Morpheus stole several "t" samples from Umbrella Europe's Paris laboratory as well as the highly-experimental t+G-Virus, intending to use the former to hold the world for ransom when used as the warhead for the missiles. His demand was for the United States and China to pay him $5 billion.
After this, the Umbrella-owned luxury cruiser, Spencer Rain, was hijacked by the group in order to gain transportation to the base. The virus was released on board, along with the B.O.W. complement being transported across the Atlantic, killing the passengers and crew, alike.
"A scared little rat with an ugly, useless gun."
— Morpheus' first words to Bruce in his new form echo their first encounter.
Morpheus' plans hit a snag, however, when U.S. STRATCOM member Bruce McGivern managed to make his way on board the cruiser and sabotage his plans. Morpheus managed to personally hunt down and hold McGivern at gunpoint, despite the dangers of the t-Virus outbreak aboard the ship. He also was dead set on executing McGivern immediately. However, due to intervention from the Chinese special agent Fong Ling, not only did McGivern manage to escape, but Morpheus himself was left horribly injured.
Desperate to make both McGivern and Ling pay, Morpheus first attempted to dispatch two Hunter Elites against them. However, after McGivern eliminated both of them, Morpheus resorted to injecting himself with the t+G-Virus (created by fusing the t-virus with a G-Virus antibody) as a last resort, which mutated him into a creature. Unlike previously seen cases of either the t- or G-viruses, Morpheus managed to maintain his mind after his transformation. His mutation kept his overall shape humanoid, while still endowing him with the strength and speed of a Tyrant. Morpheus began to pursue Bruce as soon as he mutated. Ultimately he was deterred from pursuit after Bruce and Fong Ling bolted the power to the generator room. Shortly after the Spencer Rain crashed into the island where his Waste Disposal Facility was located, Morpheus proceeded to cut down portions of a fence to access the waterways, also leaving behind some electrified fence to indicate his presence. He presumably also was contacted by the Chinese to supply the five billion requested by him. He later encountered Fong Ling and Bruce again, this time on the elevator going down to the underwater silo. He proceeded to cut the cables to the elevator and send the elevator crashing below, forcing Fong Ling and Bruce to go separate ways. He then activated the missile launch sequence and proceeded to ambush and knock out Fong Ling as she arrived at his office. After Bruce found the office and saw Fong Ling on the screen, Morpheus deduced that Bruce must have survived. Morpheus then tries to make Bruce choose between stopping the missiles and saving Fong Ling, with Bruce opting for the latter.
During a final battle, Bruce managed to use a prototype Charged Particle Rifle he found in the area against him, with Morpheus sustaining severe damage as a result, the mutagenic effects of the "G" component of the t+G-Virus began to run rampant in Morpheus' body, much as in William Birkin's transformations. Like Birkin, Morpheus began to succumb to the virus, losing all rationality and thought as his transformations became more and more monstrous. The now-grotesque Morpheus later gave chase to Bruce, with him holding the monster off until the door was unlocked, and eventually finished him with the last bullet fired directly into Morpheus' head. In the end, McGivern caused so much damage to Morpheus that the mutations spiraled out of control, turning Morpheus into a gigantic blob of flesh that exploded, annihilating him once and for all, and also eliminating the missile threat.