I'm sure it means something in the context of the story, but without knowing this context, there is 'no way' that we can tell you what it means. Is is something to do with superheroes? Batman and Superman wear capes, don't they? Perhaps superheroes have been banned from Gotham City, and the townsfolk have gone on strike, flatly refusing to do any work until the caped hero has been allowed to return. Or maybe it's 'No capers. No way'. Perhaps the town's favourite pizzeria has removed capers from their menu, and the diners are boycotting the restaurant until these salty little beauties have been reinstated. Who can say?

It is hard to know without your providing some context - what were they protesting about? A cape is a garment which covers the shoulders and back. Is someone trying to stop people wearing capes? Are cape wearers objecting -"no way" - to the rule of "no capes"???? "No way"is slang used to express opposition or objection to something. Daughter: I want to go out to the club tonight. Mother: No way! Who knows?