The second assault on the stronghold of Daiman took place in 1032 BBY and was executed by Jedi Knight Kerra Holt. The objective was to liberate the former Jedi Gorlan Palladane from the clutches of Sith Lord Daiman within his compound during the Chelloa campaign.
After Operation Influx, Lord Daiman initiated an investigation to find out who was providing intelligence to both the Jedi Order and his Sith rival Odion concerning the baradium mining activities on Chelloa. Daiman's forces captured the Rodian mechanic Skodo, discovering a transmitter. They replaced it with one of Daiman's, hoping to identify accomplices. Skodo was then subjected to fatal torture using Force lightning. However, Kerra Holt, a Jedi survivor of Operation Influx, infiltrated Daiman's compound situated in the mountains above Jenith. Subsequently, she dueled Daiman, trapping him within a force field.
However, Daiman deceived her into pursuing Odion by revealing supposed "intelligence" regarding his new mobile munitions complexes. Daiman's true intention was to draw Odion to Chelloa, where he and his forces would be annihilated by the fake munitions complexes, which were actually world-destroying Kinetic corruptors. Still enraged that the Chelloan people had harbored a Jedi agent, he had the Chelloan leader Gorlan Palladane arrested and tortured. Palladane had previously been caught in a sting operation while attempting to contact Odion using the substituted transmitter. In response, Daiman commanded the destruction of the city of Jenith. During the massacre, Palladane's family was saved by Kerra Holt, who then proceeded to rescue Gorlan Palladane from Daimanate imprisonment.
She stowed away on a shuttle transporting the village leaders of the Chelloan mining towns, who had been summoned to meet with Daiman. After landing at a docking bay, Holt emerged from her hiding spot near the engine consoles and eliminated the Daimanate Sith troopers guarding the prisoners. After freeing the prisoners, she instructed them to pilot the transport to the outer wall. She instructed them to leave without her and Palladane and head for a safehouse in the town of Arboth if Daiman returned. After dispatching several Correctors, Holt advanced to Palladane's cell, where she released him from his restraints. A sorrowful and injured Palladane admitted to contacting Odion, which indirectly led to the death of Vannar Treece during the disastrous Operation Influx. He explained that he and Skodo had used a transmitter to reactivate a single interstellar routing station. However, he was unaware that Odion had been intercepting the signals. He then clarified that his only intention in contacting Odion was to discourage the Sith Lord from returning to Chelloa. Recognizing the noble intentions behind his actions, Holt reassured Palladane, affirming that he had done his utmost to safeguard his people.
They then made their way back to the shuttle and left Daiman's compound. He was not present at the hangar since he was inspecting his palace. Before departing, Holt realized that her primary objective from Treece was not to eliminate the two Sith Lords, but to evacuate the Chelloan population. As a final act of defiance against Daiman, she decapitated all of his statues. When Daiman returned with additional reinforcements, he instructed his forces to prepare for Odion's invasion and to cover his replacement statues with cortosis plating.
Following the raid on Daiman's compound, his brother Odion launched a full-scale planetary invasion of Chelloa. Despite overcoming Daiman's minimal resistance, Odion soon realized that he and his forces had been lured into a trap. Daiman's highly praised factory carriers were revealed to be kinetic corruptors, massive devices capable of generating devastating explosions. Amidst the chaos, Kerra and Gorlan evacuated thousands of Chelloan civilians aboard the Freedom Fleet, a collection of commandeered freighters. During the conflict, Odion sustained severe injuries and vowed vengeance against both Kerra and Daiman.