Robert Bernstein, Curt Swan and George Klein tell a story in Action 286 (March 1962) about a group of villains, but not the ones you expect. Electro makes his second and last cover appearance.
The Superman Revenge Squad make their first adult appearance, following their debut two months earlier as the Superboy Revenge Squad in Superboy. These are a group of aliens who spend an awful lot of time coming up with ridiculously complex methods of exacting this revenge.
In this story, they capture Krypto, and try out a variety of red kryptonite meteors on him, until they find one that induces nightmares. In Krypto’s case, being tormented by Streaky and Titano.
So the leader uses an invisibility ray on himself, comes to Earth, and puts the red kryptonite into a bottle of ketchup. Yes, he does. Because Clark, Lois and Jimmy all ordered the exact same lunch. So Superman eats his kryptonite burger, and starts getting nightmares.
The Revenge Squad are monitoring all of this. Their monitors are truly amazing. Not only can they see anywhere on Earth, they can even broadcast Superman’s dreams. Jimmy is staying overnight at the Fortress of Solitude. For some reason, he is sleeping directly in front of the door to his room. Perhaps he really wanted to sleep under the big statue of himself. But couldn’t Superman have provided something better than fold-up cots? Anyway, I’ll just leave the mention of Superman quivering.
So Superman has his first nightmare, meeting descendants of Lana Lang and Pete Ross, who have gotten married, and lead an attack on him.
Superman’s second dream is even better, with the villains from the cover – Lex Luthor, Brainiac, Electro, Cosmic King, Lightning Lord and Saturn Queen pitting him against Supergirl.
Supergirl gets sent to the Phantom Zone, and earth gets destroyed, Superman wakes up freaking out and upset.
While it’s true that the cover image is “just a dream,” at least the story never pretends otherwise, and the dreams are actually part of the plot against him.
The story concludes in the next chapter.
Supergirl begins a new phase of her career, operating in public, in this Siegel and Mooney story.
After some pleasant homey stuff, as Linda and Dick Malverne watch tv together while the Danvers look on approvingly, the story shifts over to Lex Luthor, who escapes from prison. While the story does not directly address the Lesla-Lar Supergirl that Lex had met, his certainty that Supergirl is really a robot seems to be the conclusion he has drawn from this.
He intentionally draws out Supergirl, but she proves to not be a robot, and Luthor winds up fleeing. He has a death-ray, which he winds up shooting at himself when the car swerves.
After a somewhat obligatory stop in Atlantis, with Lori Lemaris and Jerro floating around, Supergirl picks up some rare elements, and brings Luthor back to life. He is not grateful.