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Start from Applenook Hamlet Waypoint — in Cornucopian Fields and head southeast, down to the southernmost end of Lake Bounty. From the first arm of the lake (see image) climb the grassy slope to the west. When you see the Alpha Wolf, turn left towards the cliff and seek a crevasse. This is the entry point.
It's not so much a jumping puzzle as it is a swimming puzzle. There's only one jump you have to figure out, which is how to light one of the torches -- that's the one you'll want to key off of. The rest is figuring where to swim to in a timely manner.
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Go to the hill area north of the JP directly on the other side of the lake, walk as high up as you can. Mount up and rise, use Bond of Vigor to go a bit further up, then move south and use Dash followed by Bond of Faith to jump from your mount to the JP ledge.
1. Run past or kill the skale on the way through the passage. When you come into the cave with the water, avoid the waterlogged chest, it's just a trap.
2. Jump into the water, optionally killing the skale inside, and take note of the gust pattern from the drake heads to time your swim through. You can also dodge past them.
3. Once past the drake heads, swim vertically down and south after the rock face disappears, looking up you should see a small triangular hole in the ledge. Swimming up through the hole you should find several skale, one being a veteran. Kill or swim past these, and the next set of drake heads (with a trap at the bottom), and make your way up to the surface, and into a cavern with ghost pirates.
In this small cavern is another water hole. The way to the chest is from here, underwater, but is blocked by boulders in the southwest corner of the area beneath the pirates. Take a swim down to see the blocked passage. This passage will open only after you've killed a veteran ghost on the upper platform, who must first be summoned by lighting 4 torches. If any torch extinguishes, the veteran ghost will disappear. However, since the torches stay lit for quite a long time you should have plenty of time to kill all the pirates several times if things don't go well the first 2 or 3 tries.
4. Light the torches. Press CTRL to see where they are.
5. Get back to the upper platform and kill the veteran. If you took your time, you may have to fight some more ghosts who respawned.
6. Once the Veteran is dead the underwater passage will open. Dive down and through the opening (some light is coming through it). It will become blocked again after a minute or two, so don't dawdle after killing the Veteran. Swim through the tunnel and up again to surface on the other side, avoiding or killing the sharks.
7. In the next area, deal with the skales and proceed to a steeply sloped rocky ramp leading upward. Approach the ramp with care, ready to retreat or dodge as rocks will fall from the roof (preceded by red circles on the ground). Once the rocks have fallen you can advance safely a few meters, expecting yet another series of rocks to fall beyond where the fist ones fell. After a third and last set of traps, the way to the top is clear.
Up here are 2 explorers who are also after the treasure, which is guarded by 8 Moas. They brought a bag of Moa feed to distract them while they open the chest, but the bag is too heavy for them. Obviously, you can carry that bag and jump with it. The Moa are peaceful, but will attack if you try to open the chest directly.
8. Take the bag of Moa feed next to the two NPCs, then head easterly toward the chest in the distance about two grassy "platforms" away. If you need to, you can use the speed boost (#2 on the Magical Moa Feed abilities) to help you jump across the gap toward the chest. Drop the bag on the ground (by weapon-swapping) some distance from the chest before approaching it. The Moa should run for the feed and give you time to loot the chest. The puzzle will complete when you are standing at the chest in an out-of-combat condition.
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