A group $G$ is said to be totally $2$-closed if in each of its faithful permutation representations, say on a set $Ω$, $G$ is the largest subgroup of $\mathrm{Sym}(Ω)$ which leaves invariant each of the $G$-orbits for the induced action on $Ω\times Ω$. We prove that there are precisely $47$ finite totally $2$-closed groups with trivial Fitting subgroup. Each of these groups is a direct product of pairwise non-isomorphic sporadic simple groups, with the direct factors coming from the Janko groups $\mathrm{J}_1, \mathrm{J}_3$ and $\mathrm{J}_4$, together with $\mathrm{Ly}, \mathrm{Th}$ and the Monster $\mathbb{M}$. These are the first known examples of insoluble totally $2$-closed groups. As a by-product of our methods, we develop several tools for studying $2$-closures of transitive permutation groups -- a vital tool in the study of representations of finite groups as automorphism groups of digraphs. We also prove a dual to a 1939 theorem of Frucht from Algebraic Graph Theory.