After ICEY begins after the ending of ICEY (2016). The official description states that after countless cycles ICEY defeated Judas and left the world — yet the cycles remain.
Three bound souls await. Follow the arrows, defeat them, and take their soul crystal masks — this is your mission.
You play as ICEY again, traversing three named areas: the ruins, the Upper Sea and the City of Sunset. The mission is described as repeatedly assigned, which is the load-bearing word — it ties the sequel back to the loop structure the first game was built around.