Reynard
Emperor Mongoose
Duh, misread your original premise that this is a water world so life, literally, never left the oceans! Low vulcanism also means a super volcano, even an underwater one, would be very unlikely. The low tectonics can also explain no real landmasses above sea level.
Since there's so much algae, that suggests something targeted higher lifeforms on the vulnerable ocean surface level. How about a very virulant version of a worldwide 'red tide' that destroys the food chain above the algae and maybe plankton level. Sealife far below is spared and maybe have a slightly different body chemistry because of living conditions to make them immune when the contaminated matter sinks. After whatever time frame the 'red tide' goes away leaving no trace and a mystery as to why there's only higher life forms so deep. Evolution will need a lot of time for life to adapt back to the surface.
Since there's so much algae, that suggests something targeted higher lifeforms on the vulnerable ocean surface level. How about a very virulant version of a worldwide 'red tide' that destroys the food chain above the algae and maybe plankton level. Sealife far below is spared and maybe have a slightly different body chemistry because of living conditions to make them immune when the contaminated matter sinks. After whatever time frame the 'red tide' goes away leaving no trace and a mystery as to why there's only higher life forms so deep. Evolution will need a lot of time for life to adapt back to the surface.