Long ago, before the Kingdom as we knew it was formed, a meteorite hurtled down from the sky, crashing into Mt McLargeHuge. Background radiation from the extraterrestrial visitor magically animated the very snow of the mountain, giving rise to a race of sentient snowpeople. It also sped up the evolution of the tiny furry creatures that populated the peak, mutating them into giant furry Yetis. Over time, the radiation leached through the mountain and touched a race of people underground, increasing their stature and giving them a thirst for mining.

It didn't do anything to the goats. Those are just goats. Anyway, the meteorite was in your pocket when you shrunk, so now it's tiny.