The Greygem was an artifact, forged by Reorx, in which the demiurgic god Ionthas (also known simply as Chaos) was imprisoned. The presence of the Greygem caused chaotic mutations in the races of Krynn, resulting in the creation of the races of gnomes, kender, minotaurs, and many other fabulous and chimerical races.
During the Summer of Chaos on the world of Krynn, the Greygem was broken, and Chaos was set free.
Sources: Dragons of Summer Flame
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