There are multiple cape colors which signify psy ranking.
Red Cape: a beginner Psy; they're mostly taught theory at the Academy.
Blue Cape: a slightly more advanced Psy; they are novices with little field experience. Blue Capes are barely capable of dealing 3 damage with a Mind Blast.
Black Cape: a Psy who was taught at the Academy for several years and passed stringent exams; they have some experience in more advanced Psy abilities like Elemental Blasts and Feedback and are pretty comfortable using basic shields and Mind Blast.
White Cape: a very experienced and skillful Psy. All tutors at the Psy Academy are white capes, suggesting it's the equivalent of a professor, while a "Black Cape" could be considered a senior, or graduate, student.
Independent of any government, the Psy Academy serves all nations, though it generally remains neutral during conflicts.
During the Shadow War, Psy Academy students were being abducted by shadowlings. The shadowlings would then wipe the students into listless shells, so students can be used to scan and interpret enemy signals. One of these kidnapped students was a young boy named David. David's sibling liberates David from his shadowling captors, but the sibling is unable to reverse the effects of the wiping on David. In exchange for returning David back to normal, David's sibling agrees to be the shadowling general Tastidian's slave for three years. David's sibling would later become the Hero of the Shadow War.
Because of the Hero's many victories on behalf of Tastidian including defeating spriggat leader Cerzak, there was little hope for a Dissidents victory. Desperate for help, the spriggats send envoys to the Psy Academy. Tastidian learns of this and sends the Hero to convense the Psy Academy of the foolishness of joining the Dissidents. After arriving at the Psy Academy, the Hero becomes free of the slave bracelet. Finally free, the Hero talks to Dean Lukas who informs the Hero that the Psy Academy has sided with the spriggats to stop the shadowling abductions of academy students. The Hero and the rest of the team decide to join the Psy Academy in opposition to the Shadowling Empire. Following Lukas's plan, the Psy Academy and the remaining spriggats staged a final stand to divert most of the shadowling forces away from Somnus, while the Hero's team assaulted the Queen's Palace and killed Tastidian and the Shadowling Queen.
Grand Tournament of RavinaleEdit
After the Shadow War, many students and graduates of the Psy Acadmey traveled south to fight in the Grand Tournament of Ravinale.
Ravinale Civil WarEdit
During the Ravinale Civil War, Duvalier visits the Psy Academy in his search for troops for the People's Resistance of Ravinale. Duvalier request from Dean Anya help defending their fellow psys, but Anya says she will only commit troops in exchange for all the books hidden in the four crypts.