[Galin]

Quendi And Eldar relates that the Petty-dwarves attacked the Eldar by stealth at night, or if they caught them alone in wild places...

... thus (in my opinion) the Petty-dwarves were hunted -- although it does say the Eldar at first thought them a kind of cunning animal too, noting that they rarely saw them in good light.

Well that's how I interpreted this much anyway.