She is the one who planned the Tragedy of Sablier.
When Glen Baskerville, not being human, required a new body, he decided that Gilbert was the perfect specimen. He had planned to sacrifice Gilbert himself to the Abyss and take over his body with Raven as the given chain rather than Jabberwocky. Miranda had found Vincent mourning the eventual loss of his brother and she knew of how much Vincent would be willing to sacrifice just to retrieve Gilbert. Miranda approached Vincent and taught him the way to open the gateway to the Abyss. When she late left, Vincent completed the ritual and stopped Raven from transferring into Gilbert's body by opening the Abyss. When the door opened she was seen at the Baskerville mansion, found by Jack and a Baskerville guard, who together questioned her on her appearance at the mansion. Shortly before hand Glen had threatened Jack as he was still angry about Lacie being offered to the Abyss and Glen sent the remaining Baskervilles (Lotti, Doug, Fang, Lily) to kill every single person in Sablier. But because Miranda did not inform Vincent on how to close the door to the Abyss, when everyone rushed into action to save Sablier, they were dragged into they Abyss. It is speculated that because Miranda had not been seen since then that she too was dragged into the Abyss.
Eventually after time had passed in the Abyss she would turn into Demios or "The Queen of Hearts" as they both share a love for cutting people's heads off.
(Source: Pandora Hearts Wikia)
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