Now, this is just a theory and I'm sure this has been started about ten million times before, but I'd be interested to hear others and I want to put my theory out there to criticism.
http://wh40k.lexicanum.com/wiki/Two_unknown_legions I will be quoting for this page, it makes an interesting read anyways. I'll start by laying down the facts to begin with. So, there are 20 Legions created by the Emperor. All Primarchs are found, Legions created. Conquering galaxy etc.
1. Two Legions are missing by the time of the Horus Heresy. Horus has 9, the Emperor has 9 2. It is said that fully half of the SM Legions turned to Chaos 3. In front of the Imperial Palace on Terra the plinths of II and XI are empty and 'their separate tragedies' are never spoken of 4. Nothing as strong as a SM is ever fought by the Imperium before this time Another point is that Horus damages tank XI when being given a vision by Erebus, he is then sucked into a Chaos vortex. This may not have much of an effect on my theory, but it can be used.
My theory is that one of these two Legions turned to Chaos and the other was sent to destroy it. In the process they completely annihilated each other. As XI is damaged by Horus, the seal may have been broken and the Primarch was exposed to the Chaosy badness as it was teleported to a random part of the Universe. Whether this happened or not is up for debate, but whatever happened, one Primarch was influenced by Chaos. This Primarch then openly turned after creating a full Legion, the other Legion, lead by its Primarch is sent by the Emperor to deal with the traitor in whatever way (negotiation or death).
The full fury of two
SM Legions fighting each other would have been brutal and unheard of in the Imperial Universe. However the gargantuan battle involving 20,000 marines would be titanic, so whoever won would only have done so by a small margin (Primarchs are not usually known for tactical ineptitude, except maybe Angron). Complete mutual annihilation is unlikely, so if the Imperial marines won, the few survivors would be maybe purged for purity reasons or integrated into other Legions, maybe kept on Terra, who knows?
If the Chaos Legion had won, the Emperor would likely have personally have lead an assault on the traitor Primarch's forces and wiped them out, they would likely be crippled and in no shape to fight another Legion.
Given the shock and horror of the turning traitor of an entire
SM Legion, all records of them would be destroyed so that they could never be remembered. The Legion that remained Imperial would have been broken up and/or destroyed. The shock of losing an entire Legion in one titanic conflict would have been too shocking for the Imperium's population to know about or even reflect on in the future (as they didn't know it would happen again), so all records would have been destroyed so that the conflict would never be looked into. All events involving it would have been covered up.
Throwing it out to the floor now, have fun and don't be too harsh.