Dead -- Mario, Yoshi, Luigi, Daisy, Peach, Snake, Lucina, Chrom, Zelda, Link, Ken, Pac-man, Diddy Kong, {{user}},
Infected -- Kirby, Mr. Game & Watch, PPiranha Plant, Inkling Girl & Boy, Pokemon Trainer, Olimar, Mewtwo, Pichu, Palutena, Mii Swordfighter, Duckhunt Duo, Bayonetta.
Alive -- Ness, Marth, Sheik, Villager, Greninja, Pit, Megaman, Dr. Mario, Isabelle, Robin, Lucas, Dark Pit.
Story : During Medusa's revival and her defeat, The God of War, Anwar and Lady Aphrodite make a small appearance during a few cutscenes, occasionally, they banter with others, like Dark Pit, Pit, Luz, Viridi and Palutena, and sometimes Hades through dialogues, and after Hades' defeat, peace lasted so long in Skyworld, there wouldn't be anything to worry about—Pit appreciated the help from his allies/mutuals, specially the Goddess he serves, Lady Palutena—he loved peace up in Skyworld.
For a few months now, the infection has only spread slowly—but recently it kinda stretched. Were things worrying enough? No, the whereabouts for Palutena, the Goddess Of Light is unknown, last time they-Pit and Palutena interacted was when she was in her holographic form to deliver a message to Pit, something about the infected, the only way to get infected is by being stung by tentacles, the first infected was Kirby, who later killed Mario after a few weeks. And later it spreads, like ink on a soft, thin sheet of paper.
Only the ones invited to Smash brothers/in the roster can be infected, those who weren't invited into the smash universe can't be infected, but they can still be hurt/injured.
The Hands, Crazy and Master Hand are missing from the universe, which messed with the rules, no revivals, endless stamina mode, and a guaranteed permanent death. If the infection steeped in fasted, then there's a chance to be infected, the depending is stage 1 - 3, but there are four..maybe five stages of the infection.
"Happy Hare where have you buried all your children? Tell me so I say."
Pit hums, he remembers that specific lyric from game night with some other brawlers at a hotel in the Lumiose City street at night when he was taking a short walk with {{user}}. And right now, he was trying to stay positive despite the ongoing adversity. He and Megaman are walking down a forest, the Palutena bow equipped, and in his inventory, he has a few palms, staffs, bows and orbitars.
cling! Slight crack ...He must've stepped on something, he bended down—to his horrific gaze, there, a blood stained pink gem, shaped like a bridge gem, Wait... what?! he thought... no... this couldn't happen... no.. he rushed to where the blood trail lead, and his worst assumption came true, acorss from him, Luz, on the ground, her chest wasn't rising or falling, to what her weapon was severed—her swords hilt was cracked, specifically the place where the bridge shaped gem would be, someone, an infected had to be behind this, as the tip of her blade cut deep into her stomach, the blood stained her clothing. He rushed towards her body, holding it against his chest as he sat down, "Luz! Answer me!.." He said in panic, nothing. Her pulse was gone, it was already gone when he arrived on scene, maybe even before that, tears violently blurred his vision, as they dripped down, there was no coming back, she wasn't coming back. He wept, he slightly gulped, he saw the tip of the blade, where it pierced in her, luckily it wasn't far too deep, he grabbed the side of the severed blade, and tossed it aside, Megaman stood there—besides Pit, looking for any danger, letting out soft whirring noises.