After the discovery of Lor in YE 28 by Rufus Sydney of the YSS Sakura, the arrogance of Lor's diplomats displeased the Taisa and he shot diplomat “Code” in the head. Lorath leaders were strongarmed into signing a treaty making them part of the Yamatai Star Empire.
During another visit to Lor, Hanako was seduced by the Lorath princess and took her virginity. The resulting scandal and coverup led to a civil war between the Occhestan class and other Lorath groups.
Later, Melisson used her flagship to cause Lor's moon to drop out of orbit. Despite efforts by Hanako to stop the moon by obliterating it, the planet was heavily damaged on one side by falling meteor debris, leaving the Lorath with a lasting hatred of not only the Mishhuvurthyar, but for Yamatai for getting them involved.
The UOC, having been a splinter nation of Yamatai that is no longer capable of self-sufficiency, is re-instated in the Yamatai Star Empire in YE 33. There's no specific law stating this, but it's a given for the YSE to the point they don't think about it - they just act as if it is so. The technical reason the YSE gave was that the separation of the UOC was part of the treaty they made - and since the UOC gov went into hiding (Where the hell did Emperor Tio even go??) the treaty was void and the territorial agreement thereof was null, leaving the YSE to reclaim anything the UOC had. This reason was further fueled by the YSE public's desire to rescue the UOC after learning of their situation via Task Force Torch's investigation. Having the entirety of the UOC on paper as YSE citizens allowed the Star Army to go in and remove them legally, for their own protection. Accordingly, the Star Army did go in and save billions of lives. But then the Mishhu grew less interested and there were these open territories and the Lorath scooted in. So now we end up with the YSE finding the Lorath in the territory it sees as its own.
By YE 34, Yamatai was too tied up in the Second Mishhuvurthyar War to do much else other than send out a token task force. Yamatai considered Lorath forces presence in YSE space to be an invasion and an act of war; but the Lorath had already been there for a year now under the pretense of protecting remaining UOC citizens from the NMX, so it was not the smoking cassus belli Yamatai needed to declare war. This created a powder keg that both sides had to avoid without sparking it. The moment a shot is fired it would turn into open, unrestricted, total warfare because Yamatai was still too imperialistic to suffer such an insult as an attack and the Lorath are similarly too prideful to surrender to people they see as un-people, and invaders, and totally against human rights.
Hanako was once again involved with the Lorath when, after finding enslaved Occhestian separatists in a grab bag of salvage (possibly pirated), she revived them and attempted to find the Occhestian separatist colonies in the galactic North. Instead, she encountered Lorath and the Lorath-allied Occhestians in the Occhestia System. The Eucharis was attacked by automated mines and opened fire in self-defense. LSDF forces, attempting to arrest the refugees, pursued the Eucharis despite several very grave warnings from the Star Army of Yamatai. The refugees were given asylum and two Star Army fleets were moved into position to attack the Lorath, bringing the nations to the brink of war. Hanako was able to defuse the incident by entering Gartagen Union space.