This Way Lies Madness! Peggy Carter is identified and revealed to be Sharon Carter's sister in this issue. In later Marvel Continuity, she is Sharon's Aunt.
This Way Lies Madness Cap, Sharon, and Falcon are being attacked by Faustus's men who are dressed as German soldiers from WW2. The trio is them blasted by bright light that stuns them long enough to be taken to "the psycho pit".
The scene cuts to Faustus and his patient, where it's revealed that the WW2 uniforms were used to overcome her amnesia in the hopes that she would reveal Cap's weaknesses.
In the psycho room Cap and the others are confronted by a hideous monster, which is quickly shown to be an illusion. Other illusions of the Red Skull, Zemo, Modok, and Bucky are used to torture Cap psychologically. Falcon tackles the illusion and breaks through the glass that created it. They find Sharon's parents and reveal that Faustus's secret patient is Sharon's sister, Peggy, who Cap had fallen in love with during the war. Due to fear that a sudden shock would deteriorate Peggy's condition, they didn't tell her or Cap about the other's continued existence.
Cap rescues Peggy, and Faustus is defeated. Peggy asks Falcon and Cap to stay for a while, and the two agree.
