What would happen if I had one character (Blackout in the hidden zone) and when an opponent attacks I discard a card to move Blackout into the visible area. Would I still take direct damage because he declared the attack before he was in the visible area, or would Blackout be able to take the hit? Thanks in advance.

Did you move the character before or after the proposed attacker exhausted?

If before, the proposed attack is illegal.

If after, it makes no difference as an attack cannot be made illegal.

The move would be after.

Wait, so if I have someone in the hidden area, my opponent can't attack me directly?

I didn't understand your "after" answer.

Thanks for the quick reply.

you have a chance to respond to you oppenent's declaration of attack before the attacker exhausts. At this point you can discard a card to move blackout into your visible area. Now your oppoent's declared attack is illegal so the attacker does not exhaust. He then can declare the attack on blackout.

Melon_Head is correct but just so it is a little clearer.

Opponent declares an attack
1. You say it is legal; Then move Blackout the attack still hits you directly.

2. You move Blackout to your visible area in response. The attack is no illegal. Your opponent now has the chance to re-declare an attack on Blackout or to pass. He also has the option to attack with a different character if he so chooses.