The Circum-Pacific War was being orchestrated behind the scenes by the Grey Men, who had wanted Osea and Yuktobania to hate each other so much and fight each other so long that they would eventually weaken themselves to a point where Belka could restore its legacy by destroying the both of them. After capturing Osean President Vincent Harling, the next step in the Grey Men's plot was to perform a terrorist attack on the civilians of one of the countries to fuel hatred between the two.
On November 2, 2010, the Osean forces carried out Operation Hammerblow, where the Wardog Squadron shot down retreating squadrons of Yuktobanian transport planes to render their withdraw useless. Since the airspace of retreat was in the vicinity of a civilian city, Dresdene, the Grey Men decided to carry out their attack during Wardog's operation. By doing so, they would fuel more hate for both countries and hopefully get Wardog Squadron out of the picture by framing them.
As Wardog Squadron entered the airspace, which was being jammed by Yuktobanian electronic warfare aircraft, the Grabacr Squadron entered the airspace as well and utilized their own jamming. The overlapping effect caused all units in the area to lose most of their radar efficiency as well as lowering the integrity of communications.
As soon as they started the jamming, Grabacr open fired on an engineering college within Dresdene. The number of casualties is unknown but assumed to be large in both deaths and injuries. Ambulances and other emergency services were dispatched as soon as possible. Since the city had no military value, it is likely that they did not have any anti-aircraft defenses. The squadrons supporting the retreating transport planes were ordered to keep to their mission.
The E-767 providing support for Wardog Squadron, callsign AWACS Thunderhead, intercepted the Yuktobanians' radio transmissions and ordered their violating units to cease fire. Wardog Squadron was baffled when they heard the order, as they could not see the 8492nd Squadron thanks to their jamming. Thunderhead, however, immediately began to suspect them.
The rest of Operation Hammerblow went without a hitch and declared a victory.
Nothing is known about the aftermath that played out in Dresdene itself. However, the attack led to retaliation attacks performed by Yuktobania on Osean soil, believing they were responsible. All of these attacks resulted in a heightened hatred of both countries for each other, fueling the war effort even further. The Wardog Squadron was called to Oured for questioning on the attacks. Its members testified to hearing the voices of the 8492nd Squadron on the radio during the attack, but were told that no such squadron existed in the Osean Air Defense Force.
Despite the military's distrust of Wardog, they were forced to deploy the squadron during the terrorist attacks on Osea since the bulk of the Air Force was tied down with the Yuktobania invasion. After more operations, including the sinking of the Hrimfaxi, the military had a little more trust in the squadron, but this attack would linger in their minds until the squadron were finally brandished and framed as traitors and presumably shot down.