Please help with leak!

Hi all, I recently changed out my pool light from a regular incandescent to an LED. It was a traumatic experience. I didn't have any snorkel or scuba gear, so I had to keep going back down and busting up the mortar in the niche that surrounded the wire with a hammer and chisel. Well, long story short, after I replaced the light, I did NOT use pool putty to seal the wire in the niche. I figured 'what's the point?' Well, apparently, there might be a point...which I don't understand. The pool appears to be losing water at a rate much more rapid than evaporation. I live in FL and it's hot here, but I'm losing about 2 inches or more a day. I've never done the bucket test, but will do so to make absolutely sure.

Anyway - can somebody explain to me why not sealing the wire with pool putty has resulted in this apparent leak? Could there be a leak where the niche pipe goes back to the electrical outlet junction box (where you wire the light)? If so, wouldn't there be evidence of a leak...like very wet grass/soil underneath the electrical conduit? Could this be a red herring?

Any advice would be greatly appreciated.
 
I had leaks in the pool light conduit a year ago and had the light replaced with a LED. I had a pool company fix mine which took them 8 hours because someone before used some type of putty to seal the conduit. I was told they use a rubber plug with a hole in the center to seal the cord into the conduit at the light in the pool. Something like this Amazon.com : Rubber 3/4 Garden
 
wjr75, thanks for the reply! There looks to be a slit in that cylinder, so hopefully I don't have to pull the cord completely out of the conduit to put it inside the plug's hole. But how did they seal the cord-to-plug interface? Did they goop some silicone around it?

I'm thinking I should let the water level go down past the light before I start working on this? If I do that, will the leaking water damage the surrounding land around the pool? Since my pool is 12K gallons, I think that about 3K gallons will have to leak to expose the light to air? Sounds like an astonishing amount, but maybe osmosis will just take the water away to surrounding properties with no worries?
 
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