The town of Kalm was poorly named.

When they arrive Cloud decides to tell the group about his history with Sephiroth. Apparently when they were both in SOLDIER they were dispatched to check out a malfunctioning Mako reactor in Cloud’s hometown of Nibelheim. The guide leading them to the reactor turns out to be none other than Tifa.

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Inside the reactor they discover what appear to be monsters created by Shinra scientist Hojo. His experiments involving Mako and genetic mutations lead Sephiroth to wonder if he was created this way as well.

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Sephiroth then leaves and Cloud finds him again inside the Shina Mansion in Nibelheim. Sephiroth spends the night in the library, researching his past. He learns of the Cetra, itinerant beings in search of the Promised Land. Apparently, ages ago humans detained the Cetra, causing them to be destroyed. Then Jenova, one of the Cetra, was found.  Shinra began an experiment to see if they could create offspring from Jenova and thus was Sephiroth born.

This realization, of course, drives Sephiroth insane.

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Sephiroth begins to refer to Cloud and other humans as traitors. He slashes Tifa with his sword and gives her an apparently mortal wound. He destroys Cloud’s hometown of Nibelheim, leaving it in flames.

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Cloud pursues him back to the Mako reactor and to where Sephiroth first saw Jenova. Cloud watches as Sephiroth removes the apparatus attached to it and overhears him talk about ruling the world with his mother.

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And that’s all that Cloud says about the matter. At this point we don’t know what happens other than Sephiroth was later reported dead by Shinra. If Cloud knows more, he’s not telling.

So we have a bad guy with a purpose. And not just a purpose but with mommy issues. By far the worst kind of bad guy. He makes Shinra look like a bunch of playful puppies.

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