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It would have generated countless flood stories, yes, but not necessarily Atlantis stories. The Atlantis myth has very specific aspects, at least as told by Plato, which have not permitted attaching it to just any old flood myth, one reason why the speculation has been going on for so long and has been so full of total bollocks. :)
Major losses across the world +10,000 years ago when polar ice caps retreated would have created countless Atlantis stories, not just from Plato. We are on the verge of another such event, no?