Teleportation is possible but only short distant. Like say maybe 10 miles. To jump city to city or even confident, AMRO has special areas which are powered by multiple asylums which help in a boosted jump. 

Julie is a master of destructive alchemy. A maxed level 2 from her could possibly annihilate the island (as in no trace) and send enough shocks waves to cause tsunamis across the nearest country. 

When one of the Asylums go insane, the other Asylum begins to compensate by forgoing his/her own sanity. There is a small time frame in which the Asylum can try and kill his paenter than off himself. This is drilled into them in Innocense if this situation comes about. 

Also yea once our characters survive this, they will be ranked to level A. :p 

That is when the Island will come. I have changed the story a little to make it that Rank A and B work very differently.  

In Rank A the objective is to lessen the batch of students to a minimum. Basically only the top of the top survive graduation. As such the Island is a course only given to Rank As along with a very special graduation ceremony.