The weakened armies of Phalorm and Uthtower were joined by forces from Bloodhand Hold at Iniarv's Tower, and confronted the Horde of the Wastes in a final battle there in the Year of the Lamia's Kiss, 615 DR. Unknown to the defenders who had garrisoned the tower, it was still inhabited by the former court mage Iniarv, now a lich. Iniarv was awakened by the battle, and was so enraged at the disturbance that he began attacking all sides, forcing the defenders of Uthtower to retreat and allowing the Horde of the Wastes to invade. When King Uth VII desperately begged the lich for aid, Iniarv mockingly defeated the orcs by causing the sea to flood inland, drowning both armies and washing away Uthtower. Only a few survivors from either side managed to escape, and the lands of Uthtower eventually became the Mere of Dead Men.
With the horrific events at Iniarv's Tower concluding centuries of bloodshed and decline, most of the remaining elves of Ardeep retreated to Evermeet, abandoning their realm and leaving Phalorm to its own fate. With the diminished dwarven population also withdrawing to more defensible settlements in the Forlorn Hills and Ammarindar, Phalorm ceased to exist in 615 DR, and was thereafter referred to as the Fallen Kingdom.