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The canyons of Qetag's Reach were uncovered and first populated by a band of solitary Dwarf who were insistent upon staying neutral during the conflict surrounding New Darkhaven. They lived peaceably, secure in their solitude and completely self supportive, until the Great Betrayal.
Rumors abound on what happened that fateful night when the canyons were overrun by Balrogs. One rumor holds more true than the rest. One of their own gave up their location and brought the Balrogs swarming from within, they did not storm the gates. If that rumor holds true, it is questionable if the canyons are indeed secure, even to this day.