Alright, if you have played The Elder Scrolls then chances are you know of the Dwemer, a race of men in mountains who essentially all disappeared in their steampunk phase while literally everything else was beating each other with big clubs, they were an impressive bunch. But that's not what I'm here to cover today, instead I have a theory.
Did the Dwemer just Zero-Sum?
Zero-Summing is what happens when you try to attain Godhood but fail to keep your individual personality, through a means called Chim. Both Vivec and Talos achieved Chim, and Talos became a recognized god, not too sure about the Elf. Perhaps the Dwemer tried to undergo Chim, failed and straight up ceased to exist?
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I don't know if all of the Dwemer were attempting to achieve CHIM, but if they were collectively doing so at the same time, it would explain why [i]every single one[/i] disappeared simultaneously. It's much more likely that the universe couldn't handle the actions of Kagrenac, whatever they were, and as a result he and every Dwemer just up and vanished. Or he could have gotten most of the way to forcibly making the Dwemer achieve CHIM through use of the Heart but screwed up by being rushed for time and caused any number of reasons for the Dwemer disappearing. Most likely disintegration/death of some sort, as you can find many Dwemer Phantoms in Morrowind and an entire abandoned dwemer city under Mournhold which held Dwemer ashes where they were when Kagrenac last struck the Heart. Honestly, CHIM and everything related to the creation of Nirn and the fundamental forces of that series is freakin' nuts and confusing.