On October 22, 1962, the Cuban Missile Crisis began when U.S. President John F. Kennedy announced that the Soviet Union was building a secret missile base in Cuba, just 90 miles off the coast of Florida. Hoping to avoid an armed invasion of Cuba, Kennedy opted for a naval quarantine of the island and demanded that Russian Premier Nikita Khrushchev remove all weapons. In response to the blockade, Khrushchev authorized his field commanders to launch nuclear weapons if attacked by U.S. forces. The two nations remained deadlocked for seven days before Khrushchev reconsidered and gave in to Kennedy's demands.

The Factory became a well-known gathering place for distinguished intellectuals, drag queens, playwrights, Bohemian street people, Hollywood celebrities, and Warhol's wealthy patrons. Originally decorated with silver paint, fractured mirrors, and tin foil (adornments popular with amphetamine users during the 1960s) the Factory was famed for its groundbreaking parties.