Well, the key word is usually
Late term vanishing twin syndrome is a thing. It comes with its own set of issues as well. Since its also extremely rare, you'd have to be some kind of nerd to know it exists unless you're an obgyn or at least a maternity nurse. I am neither an obgyn or a maternity nurse.
When it happens late term, and 7 months is very late term for it, you get an increased rush of complications, some of which can negatively impact the development of the remaining fetus. Hell, from what I remember, late term absorption tends to happen because there's something going wrong already. Iirc (and don't try to cite me on a test or anything), just being a little too cramped can trigger it, though it would be a very rare trigger for an already absurdly rare thing.
So, my best guess as a non doctor with zero access to the records of the pregnancy in question is that something happened to put the pregnancy at risk, and either your mom's body or yours set off the cascade leading to the failure of the other fetus. It isn't something that happens that late without some triggering event that's outside of a normal pregnancy. When it happens early on, it's a different story, it can happen for no detectable reason at all. But late term? Something went wrong that made it happen.
I'd have to go digging, and I'm currently brain fried, but one of the more common triggers worldwide is/was malnutrition. When the mother isn't getting resources to grow both critters, either her body shifts to support one exclusively, or one of the two essentially cannibalizes the other. That one (again, I'm old and tired, so the iirc factor is iffy here) is most likely to happen when the twins share a placenta, or something like that (see, old man brain missing details).
Since you've said in comments that you were placed in an unusual orientation and/or location, that would point to some kind of issue with the uterus not having enough room for both fetuses (fetii? I think I like that better despite it not being duet correct lol). I seem to recall a case in India where a woman prone to twins had a pregnancy where this happened because her uterus had lost the ability to stretch the way they normally do. Something about scar tissue maybe? Been ages since I read about this stuff.
Anyway, late term vanishing twin syndrome is the terminology I know of. If there's another, more formal terminology, iam not aware of it.