Mr Excell said he went looking for the K-Cee and contacted Mark Hollows, who was hunting in a helicopter at Charles Sound.
Wreckage was spotted on the shore south of Rocky Point on May 1 at 9am and he hung his boat off the wreck until the first float plane arrived along with Southern Lakes Helicopters.
"I believe they got hit by a big wave in the vicinity out to sea of where the wreckage of the bow section was located on shore," Mr Excell said.
Fourth witness and paua diver Douglas Fox, of Te Anau, a close friend of Mr Gordon's, said he and fellow searcher Murray Braven saw a car-roof sized "glow"in the sea about 50m off the shore of Rocky Point.
The glow was the same shade of the bow of the K-Cee. The window for diving was missed by about a day, so they did a ground search and found debris, Mr Douglas said.
He said he disagreed with police there was no defined area to search, due to his discovery of debris and alloy marks on the rocks which he believed came from the stern of the K-Cee.
Mr Douglas said he, Mr Braven and Rob Emitt dived at the bow on May 5, the next window of diving opportunity.
They found parts of the wheelhouse amongst rocks, breaking up and dispersing, 50m to 100m off shore.
"Finding the wheelhouse door had been open at the time something happened indicates someone was working the deck," Mr Douglas said.
"At low tide all this debris was within 5m to 8m of water...
"I found a red shirt where we entered the water. It ended up being Darren's t-shirt and Robyn has that now.
"It didn't look damaged and I don't believe it was worn at the time."
The inquest continues.