It seems that Lucy is in some deep shit because what looks like the Earthland versions of Sugar-boy, Hughes, and Coco are after her. Remember them from the Edolas Arc. If you don’t look at the picture.
The guy with the Pompadour is suppose to be the Earthland version of Sugar-boy, the girl in the center is the Earthland version of Hughes and god damn does Hughes look good here, and then of course you can tell that last person is coco.
Sugar-boy uses some type of magic that involves what looks like mucus. This mucus can sap the magic from anyone that it touches and he uses it thoroughly trash most of the members of Fairy Tail. Hughes also uses her magic to trash Fairy Tail along with Sugar-boy. She is able to use some type of control magic that lets her control the movements that people make. She uses this to deadly effect on Natsu having him aim his fire magic at Lucy and Michelle. It is quite sad that in the seven years that they were gone the core of Fairy Tail got very weak.
What ends up happening is that all the girls in Fairy Tail try to confuse them by saying they are Lucy. It all started with Michelle saying that she was Lucy. But the real Lucy and Michelle made one mistake and that was leaving the battle ground. Hughes realized that they had escapes and they sent coco after them. They should have both stayed there. Hughes uses Natsu’s magic as a smoke bomb and now all three of them are chasing after Lucy and Michelle.
At the end it learned that the Earthland version of Byro was leading them. He seems to have a problem with Lucy’s father Jude. I am guessing while he was running the Heartfilia Konzern he crossed paths with this group and did something that displeased them. I think it has something to do with that weird item that he gave to Lucy. At the beginning of the show Byro said that it was a holy war.