"If you were imagining the pit, then you weren't the only one. Mass hallucination could be one possibility -- but unlikely." Daud says that with perfect seriousness too, like it's something he's already considered and discarded.

"It could have been an illusion -- or a spell powerful enough to transpose one realm on top of another, at least temporarily." But where such magic would come from, well, he doesn't know. Perhaps the same place one would get enough magic to wake people a hundred years deceased and gift them all with a sentient piece of their soul, though he doesn't share that thought out loud. Instead, he continues:

"I haven't heard of a city, but enough has been washing up on these shores to make me think there must be something under the bay." He gestures vaguely with his free hand. "Perhaps you've come across some already. Odd crates. Magic trinkets."