.....Not really. It was actually saved because of Ultimecia, but Laguna helped. Also the Light Warriors. And the Dark Warriors. MOVING ON!
Ultimecia's time compression contained the altered battle between Chaos and Cosmos and gave the powers to seal Chaos and Cosmos away, but in the process, the Cloud of Darkness struck and summoned the powers of the dreaded Void. The crushing powers of the Void mixed with the strange time-compressed world caused a terrible effect on the Chaos Realm. The skies turned black and the chaos swept in more than ever. Entire walls turned into rubber duckies and the ground turned to what seemed to be oil. Everybody everywhere was sucked into darkness.
Then, everything turned green. Beneath the chaos, the lifestream mixed with the mist from a large tree's roots. As the people streamed for their eventual doom, a large entity known as Sin, who was possessed by Zeromus and guided by the Occuria, swam through the lifestream and sucked up every single person. As this happened, each person was suddenly transported to a random world.
THE IMPORTANT PART: All of your characters have been transported to a random world. They may have landed in their original world or they may not have (up to you). For the next couple days, feel free to post about either returning to their own world or landing in a strange new world. After a couple days, Mallboro will begin again, only kinda...different.