Main panel: zoom in on the 5–8 keV region of the first Chandra observation with the best-fit continuum model. The emission lines have been fit with Gaussians. A single absorption line remains in the residuals consistent with an origin from highly ionized Fe xxv (bottom panel). An xstar absorption component was then added to the model; the resulting best-fit model gives N = 2.0 ^+2.0 _−0.8 × 10 ²¹ cm ⁻², ξ = 4.0 ^+0.3 _−0.2 erg cm s ⁻¹, and v _out = 3150 ± 600 km s ⁻¹ (1σ errors). The absorption line is found to require a contribution from Fe xxiii–xxv; an additional line due to Hydrogen like Fe xxvi is also predicted. Inset: best-fit model of the absorption lines in 1A 0535+262, where the y-axis is in units of photons cm ⁻² s ⁻¹ keV ⁻¹, i.e., the predicted incident spectrum. The normalization of the Fe Kα, Kβ lines have been set to zero in order to emphasize the predicted absorption lines. Note that the data in the main panel have not been divided by the detector area, in order to illustrate the absence of instrumental features in the Fe K region, and that the data have been rebinned for visual clarity.