How do I get the chest that is down the very thin hole in The Hole?

In the quest called The Hole, there are 3 chests. I have been able to get two of them, but the third appears to be in an isolated cavern that can only be accessed by going down a hole that is two thin for the character to fit through. Specifically, it's the chest in the following picture:

How can I get to that chest?

You need the sponge.

You can get it by jumping in the ocean.

You need a sponge to use squeeze

You can find item Sponge in the sea. With it you can "Squeeze" yourself.

You have to get to the end of the sea level. Then you have to squeeze yourself above the hole and you'll fall through it.