This... idea popped into my head earlier, I wanted to make a post to get people's thoughts on it.
We know at the end of the Battle of Red Mountain, there was a confrontation in the Heart Chamber involving Indoril Nerevar, Voryn Dagoth, Dumac Dwarfking, Kagrenac, possibly Ysmir Wulfharth, and Alandro Sul. I BELIEVE it went down like this. Wulfharth used a shout on Alandro, blinding him. Wulfharth was then slain by somebody, doesn't really matter who. Indoril then confronted Dumac and they battled, ending with Dumac's death. Before Kagrenac could be apprehended, he turned his three tools upon the Heart and vanished, along with all other dwemer. We don't really know what happened to Alandro, but Voryn suggested that they destroy the tools immediately. Nerevar disagreed, rather tasking him to watch over the tools while he consulted his Tribunal who were waiting outside the dwemer ruin. Then Voryn is corrupted, Tribunal murders Nerevar and becomes gods blah blah we all know the story.
Now I am curious about what exactly happened in the single frame of time where the tools make contact with the Heart and the dwemer disappear. We will probably never know for sure, but I have a theory. We know that the Tribunal made pilgrimages to the Heart to renew their divinity, assumingly using the tools and the Heart. If Kagrenac does the same thing, what's to stop him from achieving divinity as well? Alas, wouldn't he simply become a mortal god? None of the Tribunal ever had the power to do what I am going to suggest. I think Kagrenac, being the first to extract power from the Heart, recieved more power than the Tribunal or Voryn Dagoth ever would. It's like when you get bitten by a baby snake, it is more powerful because it can't control the venom output as well as a mature snake can.
I think Kagrenac recieved so much power in that instant, he immediately achieved CHIM, becoming the very first person in history to do so. With this CHIM, he manages to pause time itself and create his own realm of Aetherius. Then, he vaporates all dwemer and extracts the faithful souls (ones not faithful were trapped on Nirn, explaining the dwemer ghosts that attack you in Morrowind) and brings them to his new realm, where they will live in immortality and happiness just like he originally intended. This would also make sense because there is someone in Skyrim I believe who says he has talked to dwemer, and Aetherius is considerably easier to reach than Oblivion.
Could Kagrenac himself be the N in L.O.R.K.H.A.N that Kirkbride never revealed to us?
Leave your own opinions below. I just thought of this and thought it was interesting.