In the Srimad Bhagavatam, we read about the mysterious history of Jaya and Vijaya, and how these two powerful associates of the Lord in Vaikunta ended up coming to the material world to play the role of demons for three lives, becoming at first Hiranyakashipu and Hiranyaksha, then Ravana and Kumbhakarna, and finally Sisupala and Dantavakra, after which they were finally reinstated in their original positions after being killed by Krsna.
For the ones’ who observed Sisupala being killed by Krsna at the sacrifice of Maharaja Yudhistira, it appeared that Sisupala merged in the Lord’s bodily effulgence, attaining the impersonal Brahmajoti, but in his purports (7.1.20) Prabhupada explains: “Śiśupāla and Dantavakra were formerly Jaya and Vijaya, the doorkeepers of Vaikuṇṭha. Merging into the body of Kṛṣṇa was not their final destination. For some time they remained merged, and later they received the liberations of sārūpya and sālokya, living on the same planet as the Lord in the same bodily form.”
Hiranyakashipu and Hiranyaksha appeared about 400 million years ago, during the reign of Caksusa Manu (the 6th Manu in the sequence, immediately before the current one). Chronologically speaking, this is after the rebirth of Daksa. The history is that the first birth of Daksa happened at the beginning of the current day of Brahma, during the reign of Svayambhuva Manu. In this birth, he offended Lord Shiva and ended up being killed by Virabhadra, and was later revived with the head of a goat. Although he used this body to conclude the sacrifice he was making, he later left this body due to shame (it’s probably not easy to live with the head of a goat). Other pastimes described in the Srimad Bhagavatam, such as the appearance of Lord Kapila and the pastime of Dhruva Maharaja also happened around this time, during the reign of Svayambhuva Manu.
The next birth of Daksa happened only much later, during the reign of Caksusa Manu. During this birth, Daksa married Pāncajanī and begot 10,000 sons with the purpose of increasing the population of the universe. All these sons, however, decided to take Sannyasi after being instructed by Narada Muni. Daksa then begot 1,000 more sons, just for the same thing to happen again. Frustrated, he cursed Narada Muni and begot sixty daughters who were married to great sages and became the mothers of most of the population of the universe.
Seventeen of these daughters were married to Kasyapa Muni, including Diti, who became the mother of Hiranyaksha and Hiranyakashipu.
Here are a few more details about this pastime that you may find interesting:
1- Hiranyaksha moved the earth out of orbit by extensively mining the planet for gold. Srila Prabhupada explains that the different planets float in space due to a delicate combination of forces that are not very well understood by modern scientists. According to him, the current mining of oil and other natural resources has the potential to also disturb the orbit of the planet, bringing unforeseen consequences.
2- As demons, Hiranyaksha and Hiranyakashipu were actually more firmly fixed in meditation on the Lord than even the most advanced devotees. This was possible because they were actually eternal associates of the Lord.
3- Although a demon, Hiranyakashipu begot such a pure son as Prahlada Maharaja because Narada Muni appeared as a bird when he was conceiving the baby and started chanting the name of Lord Vishnu. This made Hiranyakashipu very strongly meditate on Lord Vishnu (although in anger) during the sexual act, and as a result, he got a powerful Vaishnava as his son. This illustrates the importance of having a devotional attitude when conceiving a baby.
4- Although born in the high planetary systems as the son of Diti and Kashyapa Muni, Hiranyakashipu was living in Sutala Loka, which is part of the Birla Swarga (the artificial heavens in the lower planetary systems) with other asuras. After the death of Hiranyakashipu, Prahlada Maharaja became the king there.
5- When Hiranyaksha was killed, Hiranyakashipu spoke good philosophy to his aggrieved relatives, explaining about the soul and telling them the story about Yamaraja appearing as a child to the lamenting queens of a king killed in battle. Prabhupada comments that at those times even demons were instructed in the spiritual science. Srila Prabhupada mentions that “The demons are considered highly elevated in knowledge, but because they do not use their good intelligence for the service of the Lord, they are called demons.” (7.2.21)
6- At this time, Hiranyakashipu also sent the demons to attack Brahmanas and Vaishnavas and destroy Brahminical culture on Earth. His idea was to weaken the demigods and Lord Vishnu, by depriving them of the sacrificial offerings. Srila Prabhupada compares these efforts with the environment in current times, where many governments in the world encourage sinful activities and oppose the spreading of Krsna Consciousness.
7- When Hiranyakashipu was away, performing his austerities, the demigods attacked his abode. Routed, the demons ran without even taking the women and children, and the demigods used this opportunity to take captive the wife of Hiranyakashipu, who was at the time pregnant with Prahlada. Fearing that the baby would be another powerful demon, like the father, Indra decided to kill him in the womb, but Narada Muni protected him, revealing to Indra that he was actually a pure devotee.
8- After protecting Prahlada, Narada Muni took the wife of Hiranyakashipu to his asrama, where he kept her protected until the return of Hiranyakashipu. During this time, Prahlada was listening from inside the womb as Narada instructed his mother about devotional service. That’s how Prahlada became such a great devotee. The mother forgot everything she heard, but Prahlada remembered. Interestingly enough, Hiranyakashipu was very grateful to Narada Muni for protecting his wife and did not suspect he instructed Prahlada on the transcendental science.
9- Although being born into a family of demons, Prahlada was sent to the gurukula. This happened because demons in the Birla Swarga also follow a form of Varnasrama system, called asura Varnasrama. The main difference compared with the Daiva Varnasrama followed by devotees is that this is a system based on fruitive activities and on a form of hereditary caste system. They have Brahmanas and gurus, but these are all materialists. In the gurukula, Prahlada was being trained in fruitive activities and political maneuverings, but he rejected these teachings and started instead teaching his classmates about Lord Vishnu.
10- Hiranyakashipu tried to kill Prahlada Maharaja by all possible means, including ordering his associates to attack him with weapons, trying to crush him by using elephants and throwing him out of cliffs, trying to poison him, frying him in boiling oil and so on. However, in all these attempts Prahlada remained unharmed due to the protection of the Lord. Eventually, Hiranyakashipu decided to kill Prahlada himself, and that’s when Lord Nrsimhadeva appeared.
11- After being blessed by Lord Brahma, Hiranyakashipu took possession of the celestial planets and started living in the palace of Indra and enjoying the Nandana gardens (SB 7.4.8). In this way, the battle between him and Lord Nrsimhadeva happened on the celestial planets and not on Earth.
12- The battle between Lord Nrsimhadeva and Hiranyakashipu took a very long time, at least according to time on Earth. Lord Nrsimhadeva appeared at around midday and Hiranyakashipu was killed at dusk. It happens that on the celestial planets, 24 hours equals 360 days on Earth, therefore the battle took about 90 days of our time.
13- With the exception of Lord Vishnu, Brahma, and Shiva, Hiranyakashipu was able to subdue everyone on the upper planets, including the great sages and even Narada Muni, engaging them in their glorification. Normally, great sages like Brigu have the power to curse and thus kill any kind of demoniac ruler, like in the case of Vena, but they were powerless against Hiranyakashipu because he became more powerful than any of them due to his austerities (SB 7.4.13). Srila Prabhupada comments that sometimes in this material world great personalities, or even great devotees, can fall under the control of asuras and be forced to serve them. When this happens, they can only pray to the Lord for their deliverance. These rulings by the demons can thus serve to increase our meditation and devotion to Krsna.
14- Hiranyakashipu became so powerful that he was able to take charge of different functions of the universe, including the pouring of rains, the movements of the sun, and so on, without depending on the cooperation of the demigods (SB 7.4.18). However, he remained under the control of his senses. Later, Prahlada Maharaja mentioned this fact, saying “In former times there were many fools like you who did not conquer the six enemies that steal away the wealth of the body.” and “Except for the uncontrolled and misguided mind, there is no enemy within this world.” (SB 7.8.9-10), which deeply angered Hiranyakashipu. Often the naked truth can be more disturbing than any offense.
15- Srila Prabhupada explains that Prahlada Maharaja simultaneously lives in Sutala and in Vaikuntha Loka. This quality of existing simultaneously in different places is a prerogative of the Lord, but very exalted devotees like Prahlada Maharaja become, by their devotional service, almost as powerful as the Lord, and can thus perform such feats, that are impossible for ordinary souls. Although Prahlada lives eternally in Vaikunta, at the same time he appears in the different material universes to play his pastime with Lord Nrsimhadeva. The role of Hiranyakashipu is played each time by a different soul, but Prahlada Maharaja is always the same. By ruling the planetary system of Sutala and living amongst the demons he also gives them an opportunity to become devotees of Lord Vishnu.
In his purports, he mentions that: “From authoritative scripture it is learned that Prahlāda Mahārāja still lives in Vaikuṇṭhaloka as well as within this material world on the planet Sutala. This transcendental quality of existing simultaneously in different places is another qualification of the Supreme Personality of Godhead. Goloka eva nivasaty akhilātma-bhūtaḥ: the Lord appears in the core of everyone’s heart, yet He exists on His own planet, Goloka Vṛndāvana. A devotee acquires qualities almost the same as those of the Lord because of unalloyed devotional service. Ordinary living beings cannot be so qualified, but a devotee can be qualified like the Supreme Personality of Godhead, not in full but partially.” (7.4.34)
16- Just like in the case of Prahlada Maharaja, this quality of being simultaneously in different places is exhibited by other eternally liberated associates of the Lord, such as Narada Muni and Dhruva Maharaja, who appear in the different material universes while at the same time remaining fixed in their original positions in the spiritual world.