Military action
The races had settled but of course their was conflict. In the nature of beings to want what others have, it is always fighting that they turn to; and fight they did. This war saw the loss of the fae people and humanity was never the same after this.
The First war came not long after the races started to build their civilizations. Human's fought dwarves, who battled elves, who struck out against the humans. No one side gaining sway over another, until the elves went too far. Tapping into the powers of the faeries, the elves boosted their magic to the point where they could take down mountains. The dwarves were the first to fall, retreating into their mountains in the south and pulling the rocks in after them. The humans, stubbornly, kept fighting; calling upon their Gods to help them fight back. Their sacrifice gave the faeries the resolve to fight back themselves, fighting fiercely against their imprisonment and finally gaining freedom. They fled to the safety of Nym and worked a great spell of vanishing, disappearing from the world for good. This left the boosted magic of the elves temporarily stagnant, and the humans fought them to a standstill after many years.