How The Defenders Sets Up Misty Knight's Bionic Arm and 'Daughters of the Dragon'
Comic Book Legacy

In the comics, Misty Knight is a fast-rising NYPD officer who was injured preventing a bomb attack. Tony Stark fashioned her a bionic arm as a replacement (like Winter Soldier), which brought her into the superhero fold.
Eventually, Misty teamed with her friend Colleen Wing to fight a Hong Kong crime syndicate, and the two opened a detective agency, "Knightwing Restorations Ltd." soon after. She had a thing with Iron Fist, which brought her and Colleen into contact with Luke Cage and Iron Fist's "Heroes for Hire" firm. After the Marvel Civil War, Misty and Colleen were put in charge of the new Heroes for Hire, to track down superheroes who didn't register with the government.
When Daredevil returned to NYC as leader of The Hand, Misty, Colleen, Luke, Iron Fist and Shang-Chi all teamed up to battle him; at the end of that arc, Misty opened up her own Heroes for Hire business, using a rotating series of superheroes. Currently she's dating The Falcon/Captain America.
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Warning - This Section Contains SPOILERS for The Defenders.
The MCU version of Mercedes Kelly "Misty" Knight (played by Simone Missick) has followed a similar origin story - at least the first part of the character's arc. In Luke Cage we met hot-shot Harlem detective Misty, who helped Luke Cage take down Cotton Mouth and then Diamondback.
In The Defenders, Misty is experiencing a nice career boost, now leading a NYPD task force that deals in major crimes. It's revealed that her squad has been tracking The Hand's crimes, trying to put the full picture together. Not surprisingly, the fantastical nature of The Hand is too big for the cops, so when The Defenders come together, Misty supports them, as best she can.
Through their mutual friends (like Luke and Claire Temple), Misty meets Iron Fists partner/lover Colleen Wing and strikes a quick bond with the feisty warrior. During the climatic battle between The Hand and The Defenders, Misty tracks the team to Midland Circle, The Hand's headquarters. There, she finds Colleen doing battle with her former sensei, The Hand leader known as Bakuto. Misty makes a bold sacrifice when she throws herself in front of a sword strike meant for Colleen, and loses her arm in the process. As The Defenders ends, Colleen and Claire get Misty to a hospital owned by Danny Rand/Iron Fist, where she can receive the best care available.
The implications of the events of the Defenders are big for Misty. Obviously, the loss of her arm signifies that she will soon likely get her iconic bionic arm; her sacrifice for Colleen has provided foundation for both women to team up again in the MCU and fulfill their "Daughters of the Dragon" legacy; because The Defenders admittedly went rogue, escaped police custody, and blew up a major NYC building all on Misty's watch, her career prospects aren't looking so good.

It remains to be seen if Tony Stark still plays a part in the character's next stage of evolution, but The Defenders makes it clear that Misty Knight is just getting into this fight!
The Defenders is currently streaming on Netflix. We don't yet have a confirmed time or place where Misty Knight will return in the MCU; though the individual Defenders heroes are all heading into production on news seasons of their respective series.
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