Early in the year 2800, a series of gang wars broke out in Neo-Tokyo shortly after the Conglomerate withdrew from the city to consolidate power and provide an environment in which they could encourage the growth of a healthy black market. These rival gangs and factions all fought for control of the city and its underworld community. They fought in the alleys and on teh rooftops until their fighting spilled over onto the streets and required the Conglomerate to step in.
Initial responses by Conglomerate forces were met with heavy resistence, prompting a growing war of escallating responses. The more troops the Conglomerate sent in, the more they polarized the various gangs and organizations in the city, unifying them into one agressive group with one powerful ally. While Conglomerate reporting made this activity out to be deplorable and to be condemmed and put down, it was secretly what they had been after all along. Because it was easier for them to police and control one organization than it would be a hundred.
After months of open fighting and skirmishes in the streets, all time in which teh Conglomerate was clandestinely coercing their opponents to come together, they closed the trap by sending in a massive fighting force that rolled over their enemies, laying waste to huge portions of the city and killing tens of thousands of people, some enemies, some civilians. Of course, behind the scenes this was a series of calculated acts designed to unite their opponents and galvanize their citizens, creating a situation that was much more tennable in the long term.
After the Blitz, the criminal elements in Neo-Tokyo regrew as a single, loose-knit organization with several people that had been members of the former, individual gangs and organizations coming together to run the new crime scene in Neo-Tokyo as a sort of crime family. Since then, the COnglomerate has left a much larger and better trained group of soldiers on duty in the city to keep things civil, but they still turn a blind eye to much of the criminal activity that occurs there in order to foster the network that allows trade goods to flow in and out of the city, acting as a conduit between the Conglomerate, and the Dissidents of the Dregs.