  The supersymmetric $(AdS_3\times S^3)/Z_N$ orbifold constructed by the
authors in hep-th/0106171 is shown to describe AdS fragmentation, where
fivebranes are emerging from the F1-NS5 background. The twisted sector moduli
of the orbifold are the collective coordinates of groups of $n_5/N$ fivebranes.
We discuss the relation between the descriptions of this background as a
perturbative string orbifold and as a BPS state in the dual spacetime CFT.
Finally, we attempt to apply the lessons learned to the description of BTZ
black holes as $AdS_3$ orbifolds and to related big crunch/big bang
cosmological scenarios.
