Need flippers to replicate bug. Use Z3 Movement.
Walk to the water combo (non-walk, need flippers to go in)
W=Water
L=Link
LL LL
WWLL LLWW
WW <- -> WWIt seem's he is stuck. He won't go in. If you press up, (I saw this happen) there could be a chance Link will go up uncontrolled.
EDIT: Check to see it also happens without Z3 Movement.