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Project Jellyfish is a weapons project and, according to Nina Sharp, officially never existed.
Three men (Aaron Downey, Vannoy and Dillon) carried out a live field test as a part of Project Jellyfish. After the experimental Project, they each, individually, attempted to start families, but were unsuccessful. Their unborn children developed without skeletons and died. According to Downey's doctors, Aaron passed on DNA pathogens to his child.
The three men blamed the people behind the weapons project for what had happened to them. They used a chemical toxin, in the form of blue powder, able to disintegrate bones of their victims. Their modus operandi is to send a ragged doll dressed in black with a "Happy Birthday" note. Out of curiosity, the victim would pull out the strings and this emits blue powder. The deadly chemical is only effective in reduced form, oxidation would render it inactive. Their first victim was Warren Blake, the scientist who oversees the project. Three executives of Canopy One were targeted inside the elevator. Canopy One is credited with funding Project Jellyfish.
Vannoy and Dillon planned to make a bigger attack using a vest to spread the powder in the fundraising event of Congressman Jim Thorn. Congressman Thorn was known to be a senior military advisor to the Joint Chiefs at the time of Project Jellyfish. Vannoy and Dillon were stopped and killed by Olivia. Aaron Downey remained in a comatose condition, after a vehicular accident.