Hyrule Warriors shows the Rise or Destruction of Skyloft

Wow, this picture is amazing and confusing alike... first I thought it shows the destruction of Skyloft, but then I noticed that it still has the Statue of the Goddess, which shouldn't be there at this point in time. So, I thought the scene shows the creation of Skyloft. But then I noticed Hyrule Castle, which was built after the events of Skyward Sword. Together with the kingdom of Hyrule.

So, it's not quite clear and my best guess is that the artwork is flawed and it shouldn't have the statue. Or somehow the statue moved back up to Skyloft. But at least we know that the game is strongly tight to Skyward Sword. They used Link's design in the Skyward Sword backstory manga after all...