In the realm of artistic wonders, behold a magnificent creation—a three-layered underwater cake, meticulously crafted within the ethereal confines of an artistically and beautifully designed universe diorama. This masterpiece transcends the ordinary, boasting an intricate design and breathtaking details that captivate the imagination.

At the pinnacle of this aquatic spectacle rests a commanding black pirate ship, its sails billowing gracefully in the unseen currents of this surreal ocean. Every meticulously carved plank, rope, and cannonball exudes an aura of hyperrealism, beckoning viewers to sail away on a voyage of fantasy.

Descending into the depths, the true marvel reveals itself—a monstrous Kraken, its tentacles reaching out menacingly towards the abyss. Each sinewy arm, adorned with iridescent scales, shimmers with photorealistic perfection, an astonishing testament to the artist's skill.

The dramatic lighting in this masterpiece is nothing short of spellbinding. Glowing coral reefs and bioluminescent creatures cast an enchanting glow upon the underwater landscape. The interplay of shadows and highlights creates a mesmerizing dance that adds depth and dimension to every element.

In this world of dreams brought to life, the depth of field is masterfully managed, guiding the eye through a carefully orchestrated journey from the ship's crow's nest down to the Kraken's lair. Each layer of the cake is rendered with an astonishing level of clarity, inviting viewers to explore its every nook and cranny.

To achieve this level of perfection, the artist harnessed the power of the Unreal Engine, harnessing its capabilities to render this aquatic wonder in stunning 8K resolution. The result is a breathtaking masterpiece that transcends the boundaries of reality and transports viewers to a realm where the line between fantasy and reality blurs into a seamless, awe-inspiring vision of artistry.