During its service history, it had disappeared. Stories alleged that the Kilrathi had captured it in dock, with some of its crew and its complete fighter complement. Since then it was used to lure Confederation ships to doom since. As a result, nobody who saw it lived to tell the tale. Some, like Bossman, believed the story, but the vast majority of Confed's personnel, even some of their most qualified officers like Iceman, disregarded the story as nothing more than a rumor.
It turned out that the stories were correct. During Operation: Thor's Hammer in 2655, a Confed destroyer TCS Johann requested assistance from the TCS Tiger's Claw, as it had apparently wandered off into Kilrathi space and was promptly ambushed. The incident occurred in the Jotunheim System, and pilots Christopher Blair and Mariko Tanaka was sent in to investigate. Upon arrival, the Johann showed her true colors and launched five Kilrathi-captured F-44 Rapier IIs to attack the two pilots. Despite the Kilrathi's technological advantage, Blair and Spirit destroyed the Johann's escort and then destroyed the ship itself. Blair was later able to confirm that this ship was indeed the Gwenhyvar working under a false ID.
Following the Gwenhyvar's destruction, the rumors on the ship's existence were proven true and they soon stopped circulating among the Confed Space Navy.