(Capcom's primary storyline)
The Terragrigia Panic was the name that was given by the media with regards to a bioterrorist attack caused by Il Veltro, which was responsible for releasing the T-Abyss virus on the floating city of Terragrigia in 2004.
Sometime in 2004, Il Veltro launched their UAVs from one of their bases, the repurposed cruise liner Queen Zenobia (and possibly its sister ship, the Queen Semiramis). Armed with the virus and large numbers of Hunter B.O.W.s (Whether they developed them on their own or were acquired from a third party is unknown), the attack was launched on Terragrigia. The devastating panic led to the FBC being called in.
Five days into the mission, it became evident to Veltro that they had been set up by Lansdale. However, it was too late; the virus was released on both the Zenobia and Sermiramis, infecting and transforming much of the crew into monsters, the rest of whom were eaten. The communications officer lasted another four days before turning into a Scagdead, transforming long after his comrades. Veltro was now gone.
Another two weeks later, the "Terragrigia Panic" was still going on. Publicly, the FBC was operating, with assistance and overwatch by the Federation of Pharmaceutical Companies's Bioterrorism Security Assessment Alliance as part of an armed anti-bioterror campaign within Terragrigia against Veltro and the Hunters. Almost three weeks after the initial attacks, the city was still at war against the B.O.W's. Worried about possible survivors and victims, members of the NGO TerraSave asked permission to be deployed into the city under the protection of FBC agents to help citizens who needed urgent care and couldn't afford to wait for evacuation. Neil Fisher and Gina Foley were two of the TerraSave members that witnessed the incident. Neil also managed to rescue a little girl named Natalia. After three weeks of warfare against the B.O.W.s, Lansdale ordered the FBC to pull out. As they were necessary for the BSAA's continued presence in the city, they were forced to evacuate, too.
It was at this point that the commanders of the Queen Dido turned against Lansdale, understanding his role in the attacks. Unfortunately, they failed to expose him - as Lansdale activated the self-destruct system. The ship sank straight to the bottom of the Mediterranean. At the time, Raymond Vester was the only one who found Lansdale's role in the disaster (as he had stumbled upon and overheard Lansdale's conversation with Jack Norman and his backstabbing him when arriving to try and get the director general to evacuate).
Seeing no more reason to be in the city, Lansdale had the Regia Solis, a parabolic reflector satellite working as part of the city's solar power array, reprogramed. The dish was now set to reflect the maximum amount of light it could do, sending high-energy ultraviolet radiation (among other components of the EM spectrum) vertically to the surface. With less atmosphere to refract the light when heading straight down, a significant portion of the rays made it to the surface; the collective energy was so great that the city's support structure began to sublime, before collapsing altogether.
O'Brian was angered by Lansdale's act; in doing so he destroyed potential evidence that could be used to prevent another such tragedy; in reality, Lansdale was removing evidence implicating himself in the outbreak. While many lives of the task force servicemen and women were saved, O'Brian warned Lansdale that groups like Veltro would return, and perhaps even multiply. The mission was otherwise a success: the city was sterilized and Veltro, themselves were wiped out.
To guarantee that evidence wouldn't leak, particularly regarding the Globsters escaping from the Dido, the FBC raised an exclusion zone around the wreckage of the city, forbidding anyone from travelling there. This ultimately led to the Queen Zenobia Incident the following year.
At least one of the few survivors of the incident was Natalia Korda, who lost her parents to the event. This ultimately made her a viable candidate for Alex Wesker's experiment of transferring her consciousness to a new body.
- Capcom. Resident Evil: Revelations. (Capcom Co., Ltd.). File: Veltro Agent's Journal 2.
- Capcom. Resident Evil: Revelations. (Capcom Co., Ltd.). File: Note Found in Room 303.
- Capcom. Resident Evil: Revelations. (Capcom Co., Ltd.). File: Communication Officer's Journal.
- BIOHAZARD REVELATIONS NAVIGATION & ART, page 014: "テラグリジア･パニック"
- Capcom. Resident Evil: Revelations. (Capcom Co., Ltd.). Level/area: Episode 1: Into the Depths.
- Capcom. Resident Evil: Revelations. (Capcom Co., Ltd.). Level/area: Episode 11: Revelations.
- Capcom. Resident Evil: Revelations. (Capcom Co., Ltd.). Level/area: Episode 3: Ghosts of Veltro.
- Capcom. Resident Evil: Revelations. (Capcom Co., Ltd.). File: Infection Log for Queen Zenobia.
- Capcom. Resident Evil: Revelations. (Capcom Co., Ltd.). Level/area: Episode 12.