Fira is the capital of Santorini, and sits at the edge of Santorini's giant caldera. Apparently the island used to be in the shape of a circle, but then around 1500 BC, the volcano (which is still active; it's that island in the center of this picture) erupted and formed the caldera, swallowing much of the center of the island, and turning it into the crescent shape it now is.
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