Shipwreck

The shipwreck is a massive Fire Nation naval vessel capsized and uprooted by the Waterbenders of the Southern Water Tribe, marking one of the first of a series of attacks known as the Southern Water Tribe raids. It was first seen in the episode, "The Boy in the Iceberg".

History
The Southern Water Tribe, once a more complex, elaborate civilization than it currently is, was struck by a series of devastating raids in 40 ASC. Fire Nation warships appeared on the shores of the South Pole, intent on capturing the Waterbenders that inhabited the Southern Tribe, including Hama. The Fire Nation armies which continued to execute raids, each resulting in the capture of more Waterbenders and the further diminishing of the tribe.

Hama and the other Waterbenders valiantly battled the Fire Nation, despite their waning populus. During one of the very first raids on the Southern Water Tribe, they managed completely capsize a Fire Nation ship and suspend it through the use of Waterbending. Eventually, however, their noble efforts were not able to outmatch Fire Nation forces and all remaining Waterbenders were soon captured and imprisoned.

The shipwreck became a relic to the citizens of the Southern Tribe, symbolizing the damaging raids long after they ceased prior to the very last raid carried out by the Southern Raiders. According to Katara, it a haunting and evocative vestige and a reminder of the tragic occurrences. Residents are strictly forbidden to venture onto the shipwreck either out of fear of setting off tripwires or because of the horrible memories it brings.

In "The Boy in the Iceberg", Katara and Aang unexpectedly travel their way to the site of the ruined shipwreck while Penguin Sledding. Despite Katara's warnings that the ship could booby-trapped, Aang persuades her to follow him onto the wreckage. Their wandering eventually leads Aang to unconsciously set off a booby trap, accidentally firing a flare. Their actions consequently caught the attention of Prince Zuko who used the signal to pinpoint the Avatar's hiding place as the Southern Water Tribe.

It is unknown what has become of the shipwreck since the end of the War and the reconstruction of the Southern Water Tribe, although it is highly likely that it has remained intact.

Trivia

 * A Fire Nation ship was seen being suspended by Waterbenders of the Northern Water Tribe in the episode, "The Siege of the North, Part 1", in a similar fashion to how the shipwreck was suspended.