Eden was a haven of civilization. Whatever happened in Eden lead to their downfall. (Similar to the story of Adam and Eve, in the Garden of Eden)

The forgotten ark (season of enchantment) was supposed to carry the colored light to either Eden or Wasteland to revitalize the realm, but when it was attacked by the krill or get caught in a thunderstorm (images on the ship) in the mountains (the ones you sail through with the boat), the Ark crashed and the light was strewn across the realms (like winged light is strewn across an area after a Krill attack, but on a bigger scale). Over time, the flying color-light balls became smaller and smaller, leaving behind a comet trace (when a comet does that, part of the Ice and Spacedirt is being melted away because it is going towards the sun ). Then, when they were used, there was only enough left, to make the ship and the area directly around it habitable again.

Pollution/polluted water was caused by the war. Nobody was there to regulate it because they were all dead. Since the water has been polluted for a long time, it could possibly be the reason why dark creatures have come into existence. Hence, why crabs(and maybe krill) aren’t damaged by the water.

Golden Wasteland was the second most industrialized realm (first would be Eden) in the sky world and possibly the most militarised one (four out of six spirits are military, and there are soldier statues at the entrance corridor to the broken temple). For it’s potential to be a threat, especially due to its proximity to Eden, the King fills the realm with his statues (there are 9 in total - 2 of them broken in half - not counting the turrets atop the GW temple) as a way to assert his position of leadership over the land. Then the anti-power diamond movement started and, considering the polluted water, it must have been stronger in Wasteland than any other realm.

So the people there start a strike on diamond mass production, threatening the entire line of production, and, when the king sends his men in to end it, the GW spirits are backed by their Elder. There starts the civil war with GW troop’s winning at first, and it ends with the king using his giant diamond to level wasteland (the level of destruction there is comparable only to Eden, and hardly was caused by only men-to-men combat). But by doing so, the king corrupts his giant diamond, leading to the eventual fall of Eden and the spread of darkness to all the other remaining realms.

something more powerful than the blue diamonds. Blue diamonds needs to be powered with light to function. The blue diamonds cannot harness light itself. The blue diamonds have to be recharged manually repeatedly.

The spirits only had so much light(only what’s inside themselves and inside creatures of light). Where/How are they gonna get more light?

Where did light come from initially? The Megabird.

The Megabird is linked to the kingdom through a giant beam of light reaching up from Eden. The beam has likely been there since the beginning of time and is a source of infinite light. For a long time, no one had been able to tap into that much raw energy because it’s extremely powerful.

Whoever created the Diamond Eye wanted to siphon that infinite energy/light directly into a diamond to be stored and used like a giant battery that could power the entire kingdom. Maybe they believed that since civilization has advanced so much, they would be able to create something stronger than any diamond they had built before. As a backup measure to prevent the Diamond Eye from overflowing, they created concentrated forms of darkness(red crystal rocks) and attached it to the Diamond.

The darkness would suck out any extra light that the Diamond couldn’t store. They thought it would be enough to stop a potential surge of energy from pouring out of the Diamond Eye. But of course, they were wrong.

The red crystals didn’t just prevent the Diamond from exploding, they actually caused the Diamond Eye to siphon light at a faster rate than it could handle, resulting in a huge explosion of massive energy, scattering shards of red crystal and shockwaves of darkness that spread throughout the kingdom, corrupting creatures and killing the ancestors(currently spirits). After the explosion, an infinite vacuum was created(taking in light and everything around it, stirring in a huge storm).

The Dyson sphere of dark stone becomes unstable and collapses on the Diamond Eye causing a massive shockwave that severed and lifted part of Eden, while darkening the land below the Eye.

Dark stone was possibly used as a case to hold the Diamond Eye inside(similar to using a magnetic bottle to contain fusion). However, if the Diamond came out of balance and exploded, the dark stone case would be blasted out.