To clarify, when I am saying "sealed environment" I am refering to the fact that the walls of the cave/tunnel system in which the water and possible trapped air pockets reside are
impermeable, i.e. they do not allow any water to be forced through them and therefore act as solid, impermeable barriers. Thus the only open areas exposed to atmospheric pressure are those at A and E at which atmospheric pressure according to he original diagram is at 1ATA. I realize that in
reality cave walls
are in fact permeable and in that way in direct contact with the water table and the air spaces in between rock and dirt particles which are in turn in direct contact with atmospheric pressure and this therefore does not constitute a sealed environment by a strict definition of that term. The pressure inside the cave system indirectly equalizes with atmospheric pressure because it is affected by the pressures outside of the actual cave space that contains the water. In that way it's basically the same as what Blackwood explained below.
My argument is that in a lab environment, and yes clearly non-practical and totally theoretical, if we were to construct a pipe system in the shape of a giant W where the outer points of the W is at 1ATA (A&E) and the bottom of the legs where the W touches the ground is at 4ATA(B&D,) the inner peak in between the legs that points upwards (C) will then be at 4ATA also because the pipes are providing an impermeable, and in my words albeit being a somewhat inaccurate choice of wording, "sealed" environment. This will be the case because Pascal's laws state that in a
sealed container an increase in pressure introduced into a liquid will result in that pressure force to be equally exerted everywhere throughout the whole "sealed" system at right angles at every point where it encounters a barrier - in this case the sides of the pipes. The atmospheric pressure of 1ATA then at points A&E will act as plugs that could just as well have been watertight weighted plugs that exert 1ATA pressure on the water at A&E (hence my thoughts about a "sealed" system - because the water cannot go anywhere outside the pipe system.