There's an island called Zis which is claimed to be the source of the Monsters but we really don't have anything about what Loral was like before the Closing.
My personal belief is that Thinobutu was on Loral but that people left because of an invasion of Monsters during the Great Darkness. The few survivors eked out a precarious lifestyle with the monsters pretty much like the natives of King Kong's island. When the Waertagi and the God Learners came, the Monsters were eventually driven away but came back with a vengeance during the Closing.
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