If the second possibility were true, it would be hard to imagine. The rise and fall of a dynasty was a major event with detailed records.
But today, let alone records, not even names remain.
Who was the founding emperor, how many years did the dynasty exist, how many Cultivators experienced the Transcendance Tribulation Stage, what caused the demise, why there isn't a shred of record... all of these are impossible to know.
The most crucial question is the last one. Perhaps there is a connection with the method of erasing the existence of Fairy Eternity.
"Fairy, are there any anomalies occurring in heaven and earth when an Immortal perishes?"
Fairy Eternity was stunned by this question: "There has never been a case of an Immortal falling in history, who knows if there are any anomalies... Oh no, I'm wrong, I've died."
"I don't know what happens after I die, I guess there's none?"
Fairy Eternity was unsure in her answer.