The Atbal of Molagnium
In the old days, The Old Gods walked away freely from their planes of Oblivion. All races respected the Daedra, except one. The Elves, especially the Order of Atbal, dispised the Daedra, and doubted their rights to be outside of Oblivion. Only a few brief moments had occurred where The Order ever retaliated against the Daedra princes. On the second Middas of Frostfall, the Atbal devised a plan to remove the Daedric Lords from Tamriel once and for all.
The plan would have been simple, had it gone accordingly. The Atbal would bring all of the Daedra to the northern cost of Skyrim. Once all were present, the Elves would combine their magic and banish all Daedra to their planes of Oblivion. Unfortunately, Lord Sheogorath had caught wind of their plot, and devised a plan of his own. He would go along with all of the other Daedra, to make the Atbal think that their plan was going accordingly. When they got there, however, he would reveal the Elves’ plan to banish the Daedra.
Sheogorath’s plan worked, and all the Daedric Lords began to fight. But, it was too late. Sheogorath’s timing was a minute too late, and the Atbal had already begun the banishing.
In the end, neither side won the battle. Sheogorath had been hit in the head with a direct hit, causing his mind to snap, and he remains mad to this day. The Atbal succeeded at sending the Daedra back to Oblivion, but were in turn banished to the desolate island of Molagnium. Even today, the Elves remain undiscovered by anybody, the memories of their existence removed by the Daedric Princes they banished.