(Capcom's primary storyline)
The 2002 South American incident was a viral outbreak which spread in the Amparo region of the Amazon Rainforest. It was an intentional release of the t-Virus on the part of Javier Hidalgo, a local war-lord as an act of vengeance for the disappearance of his daughter and his tense relationship with the collapsing Umbrella Corporation. It was one of the earliest known implementations of Anti-Virus Weapon Protocol number 7600, an American policy of direct action against groups possessing the t-Virus. The South American incident is also the earliest known use of the Anti-Umbrella Pursuit and Investigation Team, a unit within USSOCOM that was founded as a dedicated anti-bioterror organization.
A number of Bio Organic Weapons and Zombified prisoners owned by the Sacred Snakes were released into the Amazonian wild and found their way towards nearby communities such Mixcóatl, causing local t-Virus outbreaks. Along with the release, the Javier Dam was sabotaged in order to flood the towns along the river.
The Anti-Umbrella Pursuit and Investigation Team had obtained evidence that a rogue Umbrella employee was selling bio-weaponry to Javier Hidalgo immediately prior to the release. Sending in agent Leon S. Kennedy, with support from USSOCOM soldier Jack Krauser, the US government wanted the employee captured alive for questioning.
The two found Javier's daughter, Manuela, inside a church guarded by a giant monster. The fact that Javier was Manuela's father was not revealed to Leon and Krauser until they met him in the sewers. He also said she was infected with the t-Veronica virus. Later, Manuela told them the virus was used to cure her disease.
More details about the treatment were revealed when the three met Javier in a surgery room under his mansion. Constant organ transplants had to be done for 15 years so Manuela wouldn't become a monster. Before Leon and Krauser could do anything against Javier, the giant creature they saw in the church reappeared.
During the battle, Krauser was wounded in his left arm and, afraid of being discarded as a useless "piece" by the government, he began developing an inferiority complex.
When the wounded monster was close to death, Manuela realised it was her mother, Hilda.
In order to take his daughter back from Leon and Krauser, Javier transformed into the "V-Complex", a dangerous creature that could contaminate 60% of the Amazon in two days, and absorbed everything in its way. Javier would probably even absorb Manuela into his own mutated body. It's likely that he would have lost his sense of self, but his love for his daughter remained. As a side-effect from the t-Veronica infection, Manuela's blood was flammable. The girl used her blood as a weapon to assist Leon and Krauser in the battle against the V-Complex, but Leon was worried that she would lose too much blood and die. When Manuela was almost dying, Javier asked Leon to kill him, so his beloved daughter would not be hurt anymore.
Javier Hidalgo had been a buyer of Umbrella's t-Virus samples since 1991, believing it to have the power to cure his wife Hilda of a degenerative condition. Though she ultimately transformed into a bizarre creature from the mutations, Javier continued onwards with buying Umbrella products - particularly B.O.W.s. In 2001, he was contacted by Dr. Albert Wesker, who as a representative of Umbrella's rival company, began selling t-Veronica virus samples for use as a treatment for Javier's daughter, Manuela, who was also suffering the same degenerative condition.
Although the t-Veronica brought health to her body, she began transforming little by little as side-effect. Javier decided to transplant organs for his daughter to remain human. Girls of the same age as Manuela went missing one by one, a result brought on by Javier giving priority to his daughter's life above all else.
However, insanity took over Javier's mind after Manuela ran away from his mansion. Manuela, who knew about her father's behavior, trusted Leon and Krauser, intensifying his desperation.