From the Gorbat Pride bastion, Haldor heads south along the Great Sea. Suddenly, he finds what seems to be the entrance to an underwater cavern, right on the shore of the Great Sea. Being undead now, Haldor doesn't feel the need to breathe, so swimming underwater doesn't pose him any problem.

Haldor needs to fight aquatic monsters on the first level of the Flooded Cave. On the second level, though, all aquatic monsters don't seems to care about him. A huge water dragon stands in the middle of the cave. Ukllmswwik the Wise's deep voice booms:

"I am the ruler here. What is your purpose?"

"I didn't mean to intrude," responds Haldor, "I was just curious to see who would inhabit this strange cave. Sorry if I angered you, I'll leave now."

"Wait... You seem to be worthy, so let me tell you a story. A very long time ago, at the end of the First Age of this world, the Silmarils were recovered from the hands of Morgoth during the War of Wrath. Soon afterwards, they were stolen from the elves that were guarding them by the last two sons of Feanor, Maedhros and Maglor. They were still bound to their oath, and despite their aversion for violence, they had to kill many of their kin to retrieve the Silmarils. But the remaining jewels would burn them for their sins, so Maedhros jumped into a big fiery chasm and Maglor threw his Silmaril into the ocean. After a while, he regretted his act and tried to retrieve the lost Silmaril... and with the help of Osse, he managed to do it. Now he lives in the ocean, as a creature of the sea, and guards the last Silmaril. But recently, Maglor has gone mad and started to threaten all water life, and that includes myself. Pehaps you could help me?"

"Let me see what I can do. How do I find him?"

"I can open a portal to his lair. You will have to find him, kill him and make your way back. Are you ready?"

Haldor steps into the portal... and is immediately surrounded by dozens of nagas! Myrmidons rushing at him, psyrens trying to silence him... Haldor knows he won't survive more than a few seconds, so he immediately vanishes from sight and teleports in a somewhat safe spot. Fire blast, freeze, mana bolts... and he manages to offer himself a moment of relief.

Haldor needs to progress very slowly. Those myrmidons hurt a lot, and they can spot him anywhere in the cave! Many times he has to use invisibility to get away.

On the second floor of the Caverns of Osse, Haldor is again surrounded by naga myrmidons. He teleports right away... just to find himself head to head with Walrog, the Lord of Water! If Haldor's fire spells are not very effective underwater, his ice spells are devastating. Walrog is frozen to death, and shatters as Haldor swings his staff at him...

On the third floor, Haldor finds Maglor's den. Strangely, Maglor doesn't seems to show any bit of madness... he's not even hostile.

"What is this? Why have you entered my sanctuary and slain its guardians?" asks Maglor.

"I was sent by Ukllmswwik to stop you!" replies Haldor.

"So the dragon sent you... He told you I'm insane I suppose... But who's the insane one? Me protecting the last Silmaril or you killing every living creature in this sanctuary?"

"I see... you have a point. Can you tell me more?"

"Let me tell you MY story... As I was drowning, Osse came to me and saved me. He told me I should become the guardian of the last Silmaril, as it was holding the last bit of shining light from the First Age. So now I will stand here at the bottom of the sea for all eternity, and the Silmaril shall never leave this sanctuary. But recently, the water dragon started sending mercenaries to retrieve the jewel... I can easily imagine what his goals are, and they are surely not peaceful. Now you should go back and ask him the truth."

Maglor makes quick gestures and opens a portal. But by doing this, he reveals the Silmaril for a short moment. Haldor is totally fascinated by the glowing light... Suddenly, he feels the urge to get the jewel for himself! Instead of using the portal, Haldor teleports in a short range, fires an ice bolt at Maglor and starts to vaporize the water with a fire blast. With madness in his eyes, Haldor launches all his spells at Maglor until he goes down...

As he sees the dead body of Maglor, last son of Feanor, Haldors slowly regains his lucidity.

"What have I done? Is that the price to pay for the Silmaril? Then I should not pay this price alone! Ukllmswwik, you will pay for your treachery!"

Haldor takes the portal left behind by Maglor and goes back to the water dragon cave. Without useless talk, he immediately attacks Ukllmswwik, freezing him to death. Strangely, the water dragon was not guarding lots of treasures, as someone would expect from a water dragon (Haldor even remembers one with a very strange name, Shyssiriux or something approaching, living in a remote cave during the First Age, guarding a huge room full of treasures... but nobody was brave enough at that time to claim the treasures for themselves). Haldor found nonetheless a strange trident, the Trident of the Tides.

After leaving the underwater cave, Haldor goes directly to Eruan. He has delayed his mission for too long...