Think you're on the right track. Water could be leaking along that horizontal pipe somewhere and following a path of least resistance to the hole. I assume that horiz pipe goes to a skimmer? You said you took a break and the hole then got water in it. Try draining the hole and running the pump to see if it refills with water while the pump is on. If it doesn't then the pipe is likely the problem. If not, maybe the skimmer. Curious if the water level in the hole stops at the level of the water in the pool. Best guesses for now.
Al
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