The Denarii system was a star system situated within the Gordian Reach sector, which itself was part of the Trans-Hydian region of the Outer Rim Territories. This system was characterized by a pair of stars, collectively referred to as the Denarii Nova.
Near the conclusion of the Great Hyperspace War around 5000 BBY, Naga Sadow, the Dark Lord of the Sith, piloted his damaged flagship, named the Corsair, through the binary stars of the Denarii Nova in an attempt to evade pursuing forces from the Galactic Republic. The Sith sorcerer used his powers to manipulate the solar flares emanating from the Denarii Nova, generating a massive explosion that obliterated the Republic ships following him.
This devastating occurrence led to the complete destruction of the system, resulting in the formation of a nebula composed of highly ionized gases, which became known as the Denarii Nebula.