This peace was shattered when bands of kobolds, goblins and orcs began raiding from their native lands in the Icewind Mountains to the north. These raids began slowly, but grew over time to become a full-fledged invasion. Their peaceful lives shattered, the halflings and hybsil fought back as well as they could, but had lost over half of the land between the Icewinds and Western Spur Mountains, the sea, and the Grimwood Forest.
The Parnurian Empire spread into this area only about 140 years ago. The first explorers to make it through the Grimwood found a war-torn land. They quickly allied with the halfling/hybsil federation, and helped turn the tide of war.
As often happens though, the lands regained were divided between the allies, clearing the way for Parnurian colonies. In time, the remains of the halfling/hybsil federation were absorbed peacefully into the Empire.