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The coastguard was called to near Orcombe Point on Exmouth Beach in Devon at 12.47pm on Thursday.
The mystery hole measuring 15ft wide and 15ft deep.
Big plumes of water were seen spewing from the cavity – which sent snails and plants flying.
Officials say the ‘natural phenomena’ is likely to have been caused by heavy rain.
A council spokeswoman said: ‘Council engineers are currently on site investigating and report that the sand around the hole is soft underfoot,” the spokeswoman said.
‘They will continue to monitor the situation over the weekend and between tides.
‘The beach is very popular with dog walkers and bathers who are being advised to avoid the cordoned off area.
‘Heavy rain yesterday may be the cause of the hole – a natural phenomena – to have opened up.’
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