Although Steel Phantom was built in 1991, Kennywood officials decided it had to be replaced to keep the park competitive in this age when new multimillion-dollar roller coasters open every year in theme parks. That decision was controversial, with many fans asking why Kennywood was getting rid of its best ride.

Kennywood retired the Steel Phantom in 2000 primarily due to guest complaints about its "roughness." While the ride was a record-breaker when it opened in 1991, featuring a world-record drop of 225 feet, its four inversions were notorious for causing "head-banging" against the over-the-shoulder restraints. This led to declining ridership and low guest satisfaction scores. Instead of completely tearing it down, Kennywood made the unprecedented decision to re-engineer it. They partnered with D.H. Morgan Manufacturing to remove the painful inversions and replace them with high-speed "airtime" hills and a smoother lap-bar restraint system. The ride was reborn in 2001 as Phantom's Revenge. This transformation was a massive success, as it kept the legendary second drop that dives through the supports of the Thunderbolt coaster but removed the elements that caused physical discomfort. In 2026, Phantom's Revenge is consistently ranked as one of the best steel coasters in the world.