Ayup, that's the Psychotrope novel (And, technically, it was Psychotrope, not Mirage (Yes, one in the same, bear with me) who did that.
In essence, what happened was that Fuchi had kept Mirage in storage for 30 years or so, and had some minor contact with him. When Fuchi collapsed, this got forgotten about. Mirage stopped getting info that Fuchi was there and, for some reason (I don't have that novel, sadly), read this is the USA having gone down. He flipped out and turned the Seattle Matrix off... people who were jacked in at the time got messed up (Recall, even line noise can be fatal if you're in Hot Sim!) and a few wound up as Otaku.
The novel has better info than I have, and James will probably be by in a while to smack me upside the head and correct the glaring errors that I have, but, that'll give you the short form.
