The seventh "Project Red Alert" yo-yo from YoYoFactory, the Grind Machine 2 combined ideas from the G5 and Grind Mutant 2 and was the third yo-yo in the series with an "H" profile and free spinning hubstacks. Not intended to replace the G5, which continues to be produced at the time of its release, the GM2 offered players the choice of a wider profile. It was the first YoYoFactory product to come with recessed silicone as a response system, and the green color was a throwback to the original Grind Machine. The first production run was of 350 yo-yos, and due to a design flaw, many of these yo-yos ended up damaged beyond playability. Damaged units that were sent back to YoYoFactory were replaced with early prototypes of the 888.
In late 2007, YoYoFactory revisited the design of the Grind Machine 2 and addressed the defect. The re-released version of the Grind Machine 2 began appearing in stores in November 2007. They later released a "John Ando" edition of the yo-yo, which sported John's name engraved on the side of the yo-yo, as well as a lighter green anodization. YoYoFactory had also released a "Premium Edition", which sported a black anodized finish and bright neon green z-stacks.