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>>30235790
I think it's more likely to be filled with rainwater during the wet-period and the fall of two separate areas mixing in the legend. Sinking is easily explainable for the Azores, with the thin tectonic plate moving down due to pressure being lifted by a Greenland meltwater dam breaking. (also flushing away most of what was in north America pre 10000bc)
Richat, on the solid African plate fits the description of the Atlantis island perfectly but you'd need something extreme for it to end with a bang ... unlikely to not mess up the whole planet with it.