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So a squad of Dark Eldar Wyches, one of whom has a Shardnet and is led by Lelith, is in CC with a Necron Destroyer Lord armed with Mindshackles. All Wyches are in B2B with the DLord.
The Destroyer Lord challenges, Lelith declines. The Mindshacles hit the Shardnet Wych successfully.

Does the DLord get 3 attacks, 2 attacks or 1 attack?

His full profile says three, but each Shardnet removes 1 attack. Does Lelith's Shardnet work even though she has refused the Challenge? Does the Wych's Shardnet work despite her succumbing to MSS?
The Shardnet entry says "... every enemy model in base contact with the wielder fights with 1 less Attack..."

It seems that RAW say they're still B2B so they still work, but this FEELS wrong. Of course, we all know that counts for nothing.

The Shardnet has no effect on MSS, A model with only a single attack does D3 hits. A model with 20 attacks does D3 hits.

In short, MSS causes hits to be suffered, and has nothing to do with the number of attacks a model may or may not have.

To clarify.

I am asking what happens to the DLord's attacks on the rest of the squad.
I understand and agree with your opinion of the attacks the Wych makes under MSS.

Lilith's will work, as she's still in base to base and she only can't strike blows or have her leadership used. Her wargear still works. Same with the Shardnet holding Wytch.

The more interesting question is what happens if Lilith is affected by mindshackles but declines a challenge. Does she still stike blows against her own unit? I'd say not.

Looks to me like the challenge or mss goes first if lilith has already failed her LD test why would I issue a challenge?

 JayVee wrote:
The Mindshacles hit the Shardnet Wych successfully.

Somewhat off-topic but it was recently pointed out to me that the MSS will try to affect a random model in b2b - they don't automatically go for the one most convenient in the Necron player's opinion.

Both the challenge and MSS start prior to combat, so it all depends on who's turn it is.
If it's the Necron's turn he would choose to issue the challenge first or the scarabs first, and if it's the Dark Eldar's turn they would determine the order of events.

EDIT:
And yes, MSS are a random roll of all models that are in base-to-base with the lord (so if he's smart and it's his turn, he would wait to use them if he gets into a challenge).