What would happen to this story if Hasbro issued a cease and desist order on MLP fanworks: fanart, fanfics, etc. right this day?

Would the author fight for the right to make it under the "fair use laws"?

Or would he just roll over instead?

Idk. Being smart, this place is essentially promotion central. The fanworks have caused more and more people to join in the fandom, and thus buy the products. Long story short, we make them money. They therefore like what we do.

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I'm going to assume you mean me and not the other Berylverse writers (remember there are four of us with lots of stories in the same verse), so I'll answer this: What "rolling over"? Do you mean not wanting to be sued (see: Mane6) because I used something not mine beyond the scope of what the corporation intended? That's normal. Hell, in Japan, with its stronger protections for fanwork, there's currently legislation to counteract that. So keep that in mind.

But to answer your question, how would I deal with the "end" of Seven Days in Sunny June? Take it original, of course. Treasure is a ponification of an aborted fanfic I wrote twenty years-plus ago. he. she. we. is a ponification of a YA story that didn't pan out. I'm more than just a fanfic writer, so I have decades of stuff at hand, and that also means what can be ponified, can be deponified.

So, for your entertainment, witness the first few paragraphs of a deponified 7DSJ:

As the crumbled concrete and broken rebar began to settle, Summer wiped the tears from her green eyes, wondering how close she’d come to changing her stripes…and now everything had been thrown back in her face despite her vow to change.

It had been just a hair over four years ago that she’d been the apprentice of Cælum de Aurae herself, the Mistress of Time and Space, a daughter of Emeraude, the First Sorceress and the ruler of the fey, a fairy powerful enough to keep the very barriers between the lands of the fey and the lands of the mortals apart. To have been chosen as her apprentice in and of itself was incredible, but Queen Cælum had been more than just mentor to Summer. The queen had plucked the young child from the human world back from an unknown, bygone age and became a mother to the young human, granting her the very power of the æther, that which mortals called “magic”, so much so that the golden power burned within Summer’s red hair, changing half her locks to the golden tone that only the royal family had within their manes. Under her would-be mother’s tutelage, young Summer grew adept, and prosperous.

But pride, sadly, always came before the fall, and it was within the nature of things for a daughter to eventually come to blows with her mother. And so they did: Summer, blinded by her growing talents and the constant attention of the sycophantic nobles and courtesans, became obsessed with the trappings of her station and disregarded Cælum’s warnings. By the time the queen had found out, it was too late, and the two finally came to a clash over the throne, with a fiery battle that cracked the Platinum Throne and ripped asunder the veil separating the fey lands from those of the mortal realm. Regretfully, Cælum had no choice but to send her child back to the world from whence she came.

When she came to, Summer found herself in a strange new land surrounded by terrifying and wondrous artifacts and devices. Over the years she’d lived in the realm, she discovered she was far from the County Kilkenny of her birth, now in a land known as the United States, in a massive castle of a city known as Los Angeles, a baker’s dozen worth of centuries far removed from her native time. It took her years to adjust, eventually subsuming the life of a girl, Summer Sommersisle – and what an ironic name, that! – who, by Summer’s research, had died long ago. Still, she’d made the other Summer’s life her own and now here she was, living in the sleepy suburb of Santa Monica, where her flagging magic, wits and beguile had not only let her carve out a life of her own, but allowed her something else as well: the chance to be a queen in her own right, in a manner of speaking,

Not going to lie, I'd totally read a non-pony version of 7DSJ...

It would work easily, and as much as I love the character of Sunny you write, of everyone really... if you were forced to take this Non Pony, I'd STILL be here.