The Scarlet Keep has something terrible happening within in its depths.

(Major spoiler warning for the exotic mission Oblation)

HEED THE DEAD DOVE WARNING specifically in relation to the Forge of Sorrow and Clauda. An oblation is a solemn religious offering, sacrifice, or charitable gift presented to a deity or to the church for sacred use. Immolation refers to the act of killing or offering something as a sacrifice, particularly by fire. I have personally taken the mission name "Oblation: Immolation" that this oblation is in service to Nezarec, the God of Pain. No offense to anyone but I have seen a lot of sympathy for Clauda as the heart of the forge, but too many signs point to her being a Nezarec cultist and so that fanaticism has been written deliberately into the core of her character. This is how I interpreted the lore in my own runs of the mission.

Clauda is willingly dying and being revived by her Ghost, willingly feeding Nezarec pain to empower him, and the Hive benefit with the soulfire they harvest from each strike of Ir Gohl's hammer.

The drip, for those interested
I didn't have all the pieces she canonically wears, so I improvised