What do we know about the time between SM2 and WC2?
Tiger's Claw approaches the K'Thrak Mang in order to launch a strike. Every last fighter on the carrier is out on patrol, many of them flying solo (without a wingman). The Austin is nearby, presumably coordinating with the Tiger's Claw.
Blair is flying by himself without a wingman. Iceman is in the area. Bossman is dead (died in SM2). IIRC, Angel is flying off of the Austin at this point, and commanding its fighter wing. Jazz is presumably flying off the Austin (its where he's temporarily transferred from in SM2). The other pilots from WC1 are presumably still flying off of the Tiger's Claw (with the possible exceptions of Maniac, who might be institutionalized, and Hunter, who might be doing Freedom Flight things - haven't read the novel), except for Doomsday, who's presumably back on the Austin (temporary transfer in SM2, like Jazz). Shotglass might not be on the Tiger's Claw at this point (we know he survives, but we don't know if he managed to get off the ship, or just wasn't on it to begin with).
Blair gets a brief visual on the Kilrathi stealth fighters, but his radar doesn't pick them up, so he figures he's seeing things. Shortly after that, the Tiger's Claw issues a general distress call, reporting that its under attack by fighters. Blair is first back to the Claw, and joined shortly after that by other pilots. Iceman takes charge, and forms everyone up to head to the Austin, which then calls off the attack on the K'Thrak Mang. When Blair lands, Jazz somehow manages to get hold of Blair's flight recorder data disc, which he apparently keeps (as a trophy?) for the next ten years. This leaves Blair with the following problems:
1.) He has some wild story about stealth fighters, which Tolwyn (the local admiral) is rather dubious about.
2.) Confed was able to determine the vector of the Kilrathi fighters, and it goes right through Blair's patrol area.
3.) Blair's flight data disc, which would clear him, but might theoretically indict him, is missing, and it would have been child's play for Blair to take it.
4.) Blair didn't have anyone with him to vouch for what he was doing at the time of the attack.
Of course, it doesn't help Blair's case much when Gorah Kar revolts against the Kilrathi empire, and Thrakhath is forced to destroy the sole production line for stealth fighters to keep it from falling into Confed hands (thus ensuring that stealth fighters won't be encountered by Confed until Blair once again fights them ten years later - ironically, his flight recorder information is once again lost, although this time, its due to flight recorder malfunction).
There's not enough evidence to convict Blair of treason, but there's an awful lot of suspicion, so he's transferred to the ISS, where any mischief he might get into won't cause as much trouble.
Lance Casey is born while his old man (Iceman) is on board ship. Former widower Iceman doesn't get any paternity leave to go visit his (2nd) wife and son.
Hawk serves with Iceman. Iceman dies when his ejection pod is recovered by the Kilrathi who kill him, throw him back in the pod, and leave the pod in deep space. The pod is recovered by Blair's unit. The report to the wife and kid neglects to mention the more grisly details of Iceman's death. Iceman and Lance never have the opportunity to meet.
Paladin retires from active combat pilot status, and goes back to intelligence work, using his free trader Bonnie Heather as a cover.
Angel becomes Commander of the fighter wing on the Concordia, Tolwyn's flagship. Spirit, Jazz, and Doomsday join her on-board the Concordia. Also joining them is Ralgha nar Halas, the former Kilrathi officer who defected on board a Fralthi cruiser in SM2. Halas has decided to fly fighters in combat duty for Confed. He is joined by his friend/ward Downtown, whom he saved from Kilrathi assailants when the latter was very young. Downtown provides the callsign Hobbes for Halas, ostensibly because Halas is very wise, like the philosopher Thomas Hobbes (and not because Halas bears the slightest resemblence to a feline in a famous 20th century comic strip).
Blair is eventually transferred to Caernavon station, a system that never sees any Kilrathi presence, and Shadow is assigned as his wingman.
Jazz gets hold of some timed explosive devices and decides its finally time to have his revenge on his old 'friends' from the Tiger's Claw.