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Kyrios is a small town in which the Yaidens lived. Quent Yaiden was the sheriff of the town and claimed the title long after its destruction by the hands of Jagura's soldiers. Quent came home one day to find his home burning with his family inside but with the burning rubble covered in wolves. Blue somehow managed to escape and became his lifelong companion. From that time until far into the series, he considered wolves the cause of their deaths and had a bloodlust for them.
Theories about the destruction
For most of the series, Quent was sure that wolves attacked and destroyed the city, killing his family, because he saw wolves around the burning ruins of his home.
However, later, Jaguara soldiers claimed to have destroyed the city because wolves were hiding there. It's possible that the wolves that Quent saw were actually searching for survivors and help (if they were led by a benign leader).
However, in the OAV, we see how Quent recognized one of the wolves as Darcia-III. At the time, Darcia-III was still living a normal Noble (and with Hamona alive or in coma, but not yet death), so it's unclear why Darcia-III was there, in wolf form, and what was his purpose.
It's possible that for some unknown reason he accidentally entered into a full wolf form and killed Quent's family by instinct.