While they were being pushed back for a while, GX's fate was pretty much sealed when Crownguard, the lord of Isadril flipped control of the city to Vix in July '17, following some internal disagreements in GX. Within a month, GX was pushed back to Xavax city, and instead of a last stand for Xavax city a la First Oligarch, Selenia's group headed north and made a deal with Sirion to take over Oligarch City for a new realm, Redhaven.
There was no internal disagreement. Crownguard just didn't want to lose his city, and figured the best way of keeping it was to turn traitor.