The galaxy burned in the wake of the Naraku invasion… The lesser of the five great powers, those being the Ennead Theocracy and the Asura Cabal suffered the most. Or I would say they should have in any reasonable and logical universe.
But that was if you did not take into account the fact that the Svartalfheim Federation was being led by a spectral entity from another dimension which was sacrificing its own nation for her own plans to ressurect her race and the darkness they would bring forth into this universe.
Little of the Svartalfheim Federation remained untouched by the flames of war, other than their home world and the system that surrounded it with a dark miasma so dense it blotted out the light of the star.