Ruling?

[Jayson"Phonics"]

As Brian mentioned early, Dark Tower has a different ruling on reversing chains. As it says on the Vengeance FAQ

Chain
-When you play a Chain card, your opponent may discard 2 cards. If he does, he can reverse it from his hand or Backlash deck. If he does not, it cannot be reversed from his hand or Backlash deck. When you successfully play a Chain card and damage has been applied, you may discard 2 cards and then search your Arsenal for 1 Chain card, reveal it to him, put it into your hand, and shuffle your Arsenal.
-Chain is a trait. The Potentiality Rule will not see a forced discard or search effect as this does not appear in the card text. As such, cards like Ax Kick or Faceplant cannot reverse a Chain card just because it has the Chain trait.
-Beating the Odds also does not affect the reversal restrictions generated by the Chain trait.
-You get the chance to search for a Chain card before your opponent has the opportunity to play cards such as Took It on the Chin.

And as Brian said it was ruled at Dark Tower, if you can't discard two you can't reverse it form hand or backlash. Then there was somethig else but I forget