The famous Stridenbourgh Disaster occured at 3E 137, when M'aiq publicly known as ,,The Liar", burned his sweetroll on the back of a silt strider in Vvardenfell in the now abondoned and forgotten district of New Jauffre.
When the Silt Strider met his final demise, gas and bodily fluids poured outta its body, and rendered the whole district up in the north of Vvardenfell uninhabitable, unfit for any human or elvish life. While the kahjiit fled to the west, where he was wanted even at 4E 1 on the mainland of morrowind, he appeares to have left without a trace.
Following the events, King Helseth had to outlaw the practices of silt strider riding for civilian transport and dangerous cargo, until it was banned 4E 101 altogether with any services related to silt striders. But even 100 years later, even after the volcanic eruption of the red mountain, illegal services of silt striders seemingly proceed, with latest sightings of domesticated silt striders coming from the island of solstheim.
When Revus Sarvani was questioned by the house courts, he claimed that he never offered any services to his kind or any outlanders. He only took care of "Dusty" as he calls her, accompanyin her to her death. Master Neloth was tasked to erect a watchtower, to supervise the processes that "taking care of" of a silt-strider really meant to Revus Sarvani.