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Mordheim is an Imperial city, the former capital of the Ostermark province, that was destroyed by a twin-tailed comet of Warpstone in the year 1999 IC.
Background
In the Imperial year 1999 there was a sighting of a great comet in the sky, a Twin Tailed Comet, the sign of Sigmar. Many astronomers predicted the return of Sigmar, and that he would arrive in Mordheim. Massive amounts of people from all corners of the Empire started to travel towards Mordheim, filling the city far beyond its capacity. The morals of the city quickly degenerated into almost nothing, everyone was living a hedonistic life in anarchy, and as more and more people arrived in Mordheim the situation only got worse and worse. When this happened, the seeds of chaos and corruption started to spread among the new citizens of Mordheim, and it wasn't long until daemons walked the streets.
The Destruction of Mordheim
It happened on New Year's Eve, the comet fell, but it was not the return of Sigmar as predicted. The comet smashed into the city, instantly turning it to rubble and brutally killing everyone who had gathered in and around it.
People speculated that Sigmar had passed his judgement on the people living in the city, killing them for their unworth.
City of the Damned
After this event, the place of Mordheim became a place of great fear and paranoia. Word spread about a mysterious stone that was located in the city, known as the Wyrdstone. Many factions of the world would pay a gigantic sum of money in return for the stone. Many warbands began traveling to Mordheim, recently dubbed The City of the Damned, with hopes to find the precious stone.