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Midgar was laid in ruins as we seen with Nanaki 500 years after the event. Holy w/ lifestream beat Meteor, likewise no crater and the planet wtill being there. We have no idea what exactly happened after the Sephiroth incident. Maybe if they make FF7-2, we will have those answers plus more in a brand new storyline.
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You will walk in fire, earth, water, and air, through temptation, and at last into despair and desolation.
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