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Wait, really? Virginia (aside from this story anyway) seems like the less failed state compared to West Virginia. Huh.
Short and simplified version:
Virginia had a lot of land and it was a slave-holding state. But the western part was in the mountains, where it wasn't really feasible to have a plantation or conduct large scale trade. Waterways were the most efficient way to trade. By the time the Civil War rolled around, Virginia wanted to continue slavery, but the people in the mountains didn't really give a fuck. They were poor and didn't want to fight for the plantation owners.
Post war, WV continued their status quo as a poor mountain state with mineral resources but not much else. Virginia continued to flourish with its arable land, cities, military facilities, and ports.
That makes sense. Also explains why they push so strongly for coal if that's one of the few things WV has going for it.
After all their second most popular export, McElroy brothers, is a highly limited resource.
It was also one of the early fronts for labour organization and the owners came down on them pretty hard to the point where gun battles were fought.