Despite Dr. Ivo Robotnik's global takeover, Golden Hive Colony managed to thrive undetected. During this time, the Prince to the throne, Charmy, was supposed to undergo an arranged marriage. Initially, Charmy refused, but after some time away he returned home and got engaged to Saffron.
Some time later, during the expansion of the Eggman Empire, Golden Hive Colony was located. Dr. Eggman had his forces destroy the colony, either killing its citizens or imprisoning them in the Egg Grape Chamber. All of the kingdom's holdings and structures were converted for Eggman's use. Charmy Bee, the heir to the colony's throne and his fiancee' Lady Saffron, were the only confirmed citizens to have escaped, and brought news of the colony's invasion to Knothole.
Wanting to know what happened to Charmy's parents and people, Chaotix members Vector the Crocodile, Mighty the Armadillo, Ray the Flying Squirrel and Espio the Chameleon went to the colony, and Espio broke into the Castle, now serving as one of Eggman's primary command facilities and robot factories. Espio uploaded NICOLE into the main computer's system and downloaded all information related to the invasion. NICOLE was unable to locate any specific survivors due to the fact that Eggman never kept records or images of specific individuals he captured.
However, by the fact that it's population was scattered, it's territories occupied and its beautiful landscape's ruined and polluted beyond repair, NICOLE concluded that the original Golden Hive Colony was effectively gone. As such, Espio, thirsting for vengeance for his friend Charmy, ordered NICOLE to seal the complex and have the Castle's Power Matrix overload, saying that, while the colony was gone, Eggman wouldn't have it either, and while Espio and the others escaped, the remains of Golden Hive were completely destroyed by the explosion.