The Awoken were made during the Collapse, when an independent colony ship was escaping the system but was stopped by an unknown Dark something.
The Traveler fired a beam of Light at it and the two powers resulted in a black hole type deal that sucked in Mara and the ship.
Mara then used the power of owning that space, as the first one to enter gave her ownership, and used it to change the people into what would become Awoken.
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Sure no problem. They were the humans of the ship, remade by Mara once they were all inside. Inside that space, time went by much faster than in the material plane, and they grew a civilization out of the starting crew. Far as I can recall, she had unlimited potential in reshaping them. There’s some lore about someone finding out and being mad that they weren’t all made immortal and more godlike.