Before the Firefall this was all a giant industrial port – the largest one in Brazil, in fact. When the Firefall happened, meteorites struck the ocean and the whole area was washed away by the tsunamis. The Accord tried terraforming the area, but they left the coastline alone.
Daakernot saw an opportunity to bring in some revenue and founded the Sunken Harbor holmgang Tournament. Over the years it morphed from a tournament into a proper league, and it’s still easily the most popular attraction anywhere in New Eden.