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One of many, many theories. :)
Obviously, the Mediterranean cataclysm will have lived on in folk memory for a long time, but it contradicts so many aspects of Plato's version of the Atlantis story that I don't consider this a candidate for explaining the Atlantis myth in particular. I know you propose it merely as the origin of that story, but I don't think it is even that. For starters, it's clearly not outside the Pillars of Hercules. Again, ancient sources have so many flood myths:
@Scilly.Suffolk I think the Atlantis story originates from Santorini in the Mediterranean.
https://m.youtube.com/watch?v=KrnJJX_REPk