The Tragedy

The World's Most Despair Inducing Incident is a major event in the Dangan Ronpa series. It began around one year before the School Life of Mutual Killing incident that befell the students of Class 78.

The incident had been described by various people as being an extraordinary form of social unrest, which quickly culminated into uncontrolled, meaningless chaos, violence, and death.

Summary
Pre-Incident

Facing financial shortcomings, Hope's Peak Academy decided to allow students without excellent abillities to attend the academy for an immensely high fee in the hopes of continuing its search for the best talents.

These unremarkable students were placed in the "reserve course" and, though having paid immense sums of money and fought through hotly-contested examinations, were eventually treated as nothing more than "second-class" students by the main faculty and main course students.

Hajime Hinata, in an attempt to become part of the main course he long admired, applied for an experiment for artificial augmentation, renaming himself Izuru Kamukura and in the process gaining the title of Super High-School Level Hope; however, his existence was kept a secret from even the main course students.

World's Most Despair-Inducing Incident
Junko Enoshima, in her desire to spread despair, forced the Student Council of Hope's Peak into the first known mutual-killing game, which killed all but Izuru Kamukura and the heavily wounded student council president Soushun Murasame. This was broadcasted to the reserve course, resulting in unabatable unrest at seeing the school apparently having spent the schools funds they had paid to "create" murderers.

The reserve course then rebelled and protested, not knowing that they were being led and agitated from the shadows by Enoshima and her organization, Super High-School Level Despair. This social unrest soon became a movement that spread outside the academy's walls, turning more and more violent until violence and death became a normal part of society.

Hope's Peak Academy then decided that, in light of the drastic development, they had no choice but to cease operations as an educational facility, effectively transforming the school into a shelter for the remaining students. Unfortunately for Hope's Peak Academy, this plan was doomed to fail, leading directly to the events of the first game.

Junko Enoshima hijacked the plan from the inside of this locked-down facility by killing headmaster Jin Kirigiri and erasing the memories of the other survivors except those of her fellow conspirator and twin sister, Mukuro Ikusaba.

In-Game Description
"The biggest and most despair inducing incident in all of Hope's Peak Academy ’s history" was only the beginning to what would be the world's end. The biggest and most despair inducing incident in all of Hope's Peak Academy’s history ( the cover-up of ASDS caused the reserve course students to rebel…

At first, it was optimistically thought that everything would calm down soon, but the situation worsened and quickened its pace. The movement happened on the Internet, and formed a community of its own.

Soon, not just students were involved, but came to include people of various races and nationalities in its development and spread off the internet and into real life.

At the beginning of the movement, it involved demonstrations regarding social issues, but as it spread through the world, its abnormality began to show. At some point in time, the motives and modus operandi changed, and left behind only meaningless destruction and violence.

Strong people killed weak people…

Weak people murdered even weaker people…

Weak people formed factions and lynched strong people

As the violence and death spread, people became desensitized. As if time had gone backwards, people took death to become a certainty. The media reports overflowed with death, and people ate as they watched. By the time the world had noticed the abnormality, it was already too late.

The overpowering “despair” became a huge wave that swallowed up the world in the blink of one’s eye…

Soon, terrorists and coup d’etats sprang up and caused the despair that is war. It wasn’t war that happened due to the clash of ideals, religion or profits…It was just war.

Pure war.

Therefore, no way to solve the problem was found. However…how did what was originally a students’ movement develop into such a despair-worthy situation? This was because of…the existence of “a certain group of people”.

It revolved around the “certain student” who led Hope's Peak Academy to its destruction; a group called “Super High School Level Despair”.

Their talents, recognized by Hope's Peak Academy, were used not “for the sake of causing hope for humanity”…They used their talents “for the sake of causing despair for humanity”. Those who held great power brainwashed ordinary citizens to spread despair…

Those who had talent with computers created software to spread despair…

Those who had great influence over people created new ideals to spread despair.

This is how “the biggest and most despair inducing incident in all human history” was produced. Indeed, as long as “Super High School Level Despair” exists, this despair will not end…

“The biggest and most despair inducing incident in all human history” will not end…

Aftermath/Current Status
An organization, the Future Foundation, hoped to revert the world to the state it was in before the incident.

They saved the few who had managed to survive the Mutual Killing incident of Class 78. Makoto Naegi, Kyouko Kirigiri and Byakuya Togami would later join this foundation.

Shortly after they saved what was left of Class 78, the Future Foundation also found what was left of Super High-School Level Despair, left in utter disarray after the failure of the Mutual Killing incident. The Future Foundation hoped to reform the members of Super High-School Level Despair by using the New World Program to replace the memories of their time in Hope's Peak Academy and therefore erase the memories of their heinous deeds; the Future Foundation was so eager to have this plan work that they pushed the program upon the members of Super High-School Level Despair while the program was still in its testing phase.

This, unfortunately, backfired thanks to Hajime Hinata - as Izuru Kamukura - who had, in his fanatic fervor, uploaded AI Enoshima into the New World Program via a memory device, allowing her AI incarnation to run amok and cause catastrophic changes to the system, leading to the events of the second game.