As Malan'tai Ralin led an assault on Envy's region of the city, Envy responded in kind by meeting them with impromptu militia. But while the details on that are still coming to light, Malan'tai had a plan in place, as usual. He had contacted the US Government and told them an opportunity was presenting itself.
So imagine HIVE's surprise when local forces, in combination with the force of the US Military, came knocking at their door.
Most of HIVE fled away from the conflict, thinking themselves outmatched by the overwhelming forces. Some of them were slain. They were dealt a devastating blow, and it wouldn't do good to come back out of the shadows just yet. While they recuperate, they'll let the heroes savor their victory.
What does this mean for California? Well, the US have taken it into their possession again. They won't soon again underestimate the forces that have built there. And they're seriously cracking down on crime. To the US the Titans are out of mind, and they are glad the old organization is gone. They'll be keeping an eye on them. But there are other heroes collecting in the dark...they still fight for a common cause. A gentler world.
And they won't go quietly into that long goodnight.