  Two-component dipolar fermions in zigzag optical lattices allow for the
engineering of spin-orbital models. We show that dipolar lattice fermions
permit the exploration of a regime typically unavailable in solid-state
compounds that is characterized by a novel spin-liquid phase with a finite
magnetization and spontaneously broken SU(2) symmetry. This peculiar spin
liquid may be understood as a Luttinger liquid of composite particles
consisting of bound states of spin waves and orbital domain walls moving in an
unsaturated ferromagnetic background. In addition, we show that the system
exhibits a boundary phase transitions involving non-local entanglement of edge
spins.
