After resurging from the Outback, Edward "Ned" Kelly spent some time living amongst northern New South Wales' brigands and outlaws. All of them had heard the story of the King of Bushrangers's last stand. Many chose to join him, eventually forming a significant army of 2,000 men. This armed force made its way south, fighting an increasing number of colonial forces from the dreaded New South Wales Corps, though in his exile Ned had become a voracious reader of military literature, both classical Oceanykan and European.

These men, sometimes dubbed the "greenheads" due to their use of green sashes, bore the standard of the Southern Cross, which was quickly becoming a symbol of Oceanykan national unity. At their peak, the greenheads had a force of over 30,000 men. Their lack of training and reliable supply was partially supplanted by the presence of excellent leaders, bushranging skills and a genuine revolutionary zeal. Ned's Rebellion ended following the Battle of Gosford, where Edward Kelly was killed in a cavalry charge by concentrated cannon fire.

One of the most important moments in Ned's Rebellion was the formation of the First Oceanykan Council on the 1st of April of 1886, widely and officially considered as the beginning of the nation's struggle for independence and a key point in the formation of its collective identity.