The Thunderbolt's "heroic" efforts to detain super-powered vigilantes landed them smack-dab in the middle of a nationwide controversy over the team's merits.  In Thunderbolts #116, Osborn was once again giving TV interviews aimed at damage control for their recent (and very public) conflicts.  Back at Thunderbolts Mountain where Osborn watched his news highlights, he began taking inventory of the team's status quo with the team's field leader Moonstone.  Both Penance and Moonstone were removed from field duty due to injuries (both physical and mental), yet Osborn was able to smooth things over with his management at the C.S.A. as he convinced them the team was functioning properly.  There was also some controversy with the use of the Negative Zone as a detention facility for unregistered superheroes, the result of which was that Thunderbolts Mountain may be used as a temporary holding facility.  Osborn was not happy with that decision, but he wen all with it to keep the powers-that-be pleased.  

Osborn and Moonstone's conversation was interrupted by Osborn's secretary who informed the duo that Dr. Leonard Samson (aka Doc Samson) had clearance from the C.S.A. to begin treatment on Penance.  Neither Osborn nor Moonstone were pleased to see the likes of Doc Samson within the Thunderbolts headquarters. Unphased, Osborn insisted that Moonstone get healthy and return to the field because he did not want to see the old core of Thunderbolts looking better than his roster.  Meanwhile as Penance was being transferred to a new holding cell, other inmates began provoking the former New Warrior.  The result of was complete chaos as Penance attacked the villain Hellrazor.  Osborn and Moonstone immediately made their way to the prison just in time for Moonstone to blast Penance violently against the prison wall in order to subdue him.  Osborn grabbed one of the guard's guns and contemplated killing Baldwin right on the spot, but Moonstone convinced her boss that was a bad move.  Osborn complied, but requested that extra security be placed within the base's holding cells.  Out in the field, the Thunderbolts team arrested (with relative ease) Kendra Louise Price (aka Caprice) as well as the vigilante known as Mindwave.

The Thunderbolts take in another visit at the beginning of Thunderbolts #117 when Doc Samson arrived to begin his analysis of Bobby Baldwin.  In a moment of gratifying fantasy, Doc Samson imagined pummeling the life out of Norman Osborn upon his arrival to the Thunderbolts Headquarters.  

The drama continued for the Thunderbolt's director in Thunderbolts #118 as the sight of the Goblin mask caused Norman to fall out of his chair in terror.  He requested that his secretary open the drawer to see if anything was inside, and there was no mask!  The delusional Osborn requested stronger meds and then proclaimed to himself, "I hear you.  I hear you."  Mac Gargan (aka Venom II) was also experiencing his own personal meltdown as the Venom symbiote appeared to be willing to eat him alive if Gargan did not quit his whining.  

As anti-Thunderbolt loomed within the general public (as seen via a variety of posters scattered throughout the country), the anti-Thunderbolt sentiment within the mountain base was also reaching a crescendo.  The Swordsman plotted an attack against his team by engineering the explosion of the team's jet, the Zeus.  Swordsman, under the control of the imprisoned psychics, then walled himself off in his quarters and refused any outside contact.  Osborn, now in complete freak-out mode thanks to the telepaths, eventually locked down the base but not before having a Goblin-relapse in the bathroom stall.  As the havok ensued, Venom annihilated a group of security guards who had been sent to detain the Swordsman.  Back in his quarters, the Swordsman shaved his head bald (as a homage to his father and lineage) and plotted his insurrection against the Thunderbolts.

Osborn reached his tipping point in Thunderbolts #119 and he ordered Radioactive Man and Songbird to kill the Swordsman.  Andreas Strucker prepared for the inevitable attack and he deputized a handful of Thunderbolt guards to comprise his 'personal detail.'  The four imprisoned telepaths were reveling in the chaos they had created.   Upon hearing the news that Venom and Swordsman were on a collision course with each, Osborn decided to let the two of them attempt to kill each other.  That plan seemed more likely to succeed in Osborn's mind as compared to trying to save either of them.  Meanwhile, as Penance and Samson continued their discussion, the duo soon became aware of two things.  First, that Penance's powers as Speedball were beginning to return.  Second, that Thunderbolts Mountain was under attack by the four imprisoned psychics.  Doc Samson decided not to warn Osborn and his team about the attack.  When Venom and Swordsman collide, the result was catastrophic and Venom endured a nearly mortal wound from the Baron.  The complete horror and dismay which pervaded the Thunderbolts headquarters (as well as the psychological provocation from the conspiring inmates) prompted Osborn to take matters in his own hands.

In Thunderbolts #120, Osborn made his way to his private cache at the Thunderbolts Mountain sub-basement and dug out his Goblin attire.  

The soliloquy that ensued (shown in its entirety at the bottom of this page) exhibited Osborn's quintessential delusions of grandeur as well as his lust for power.  After donning the Goblin gear, Osborn took off on his glider in search of Swordsman and Venom, in order to dispense some team-discpline.  At this point only Songbird and Radioactive Man appeared to be holding it together, but that soon changed as Radioactive Man decided to give the entire base cancer.  One of the security guards then bashed Radioactive Man over this head with his gun to prevent the Thunderbolt from doling out that punishment.  Soon after, the Green Goblin and the Swordsman collided and the results were calamitous for the Strucker heir.  Osborn made quick work of the Swordsman, crushing his sword, humiliating him, then finally crucifying him.  Norman then took off on a killing spree, maiming and slaying random guards with the onslaught of his Goblin arsenal.  

Meanwhile, the four imprisoned telepaths unveiled the rationale for their plot, they, like many Americans, wanted the Thunderbolts brought down for their illegal actions.  The only way they believed they could do so, was to have the team kill innocent human staff members in cold blood.  That, they believed, would bring the C.S.A. down on the Thunderbolts program, ousting its villainous roster.  The telepaths last obstacle was the murder of both Penance and Doc Samson, so they manipulated Moonstone into performing that task.

The Caged Angels story arc concluded in Thunderbolts #121 as Moonstone went on the offensive against Samson and Penance.  But she was no match for the duo, who crushed her attack effortlessly and only at the request of Samson was her life spared.  As the Green Goblin continued his rampage throughout the base, Songbird took the opportunity to thwart his mayhem.  With the drop on Osborn, Songbird used her sonic blast powers to knock him off his glider.  

Meanwhile, Bullseye, fresh from his surgery, made his way to the prison floor and killed (using scalpels) the four psychic inmates, which ceased their attack on the Thunderbolts.  Apparently the telepaths were unable to manipulate Bullseye because the nanites in his brain (of course, that should have held true for rest of the team as well...).  Two days later, things began to quiet down at the Thunderbolts headquarters and Osborn was, once again, on damage control mode with the C.S.A. trying to play down the tumult that had just unfolded.  Osborn dodged claims about the appearance of the Green Goblin and he blamed the entire melee on the telepaths.  

Later, during a conversation with Songbird, Osborn claimed that he was in line for a promotion and that he was viewed as a hero by the C.S.A.  Songbird was not buying Osborn's claims and instead she attempted to blackmail Osborn.  She informed her boss that the security footage which revealed his antics as the Green Goblin was already off the Thunderbolt's premises and in the hands of Doc Samson.    Songbird then insisted that she be reinstated as the team's field leader, be given veto power on new members and assignments, and wanted the team to do search and rescue operations.  Osborn reluctantly complied, but then informed his report that Bullseye was aware that a someone had told him that his nanochain was off and that he was free to escape (back when they were trying to capture the Steel Spider).  Osborn had put two-and-two together as he subtly threatened Songbird with the notion that he would tell Bullseye that it was her who provided the misinformation.