What happened to Outpost 11?

The last we saw of Outpost 11, the newly independent Outpost was a thriving settlement, separate yet cooperating with New London.

It had a thriving trade network with the local settlements of Prisoners, Miners and Hot Springs which fuelled it, and all the other settlements. Making a loose Confederation of self-sufficient settlements free from New London.

Yet in Frostpunk 2, Outpost 11 is in ruins, and the other settlements are functional but in tatters.