Mars contains a large number of yet unexplained collapse features, sometimes spatially linked to large outflow channels. These pits and cavi are often taken as evidence for collapse due to the release of large volumes of pressurized groundwater. One such feature, Ganges Cavus, is an extremely deep (~ 6 km) collapse structure nested on the southern rim of Morella Crater, a 78-km-diameter impact structure breached on its east side by the Elaver Vallis outflow channel. Previous workers have concluded that Ganges Cavus, and other similar collapse features in the Valles Mariners area formed due to catastrophic release of pressurized groundwater that ponded and ultimately flowed over the surface. However, in the case of Ganges Cavus and Morella Crater, I show that the groundwater hypothesis cannot adequately explain the geology. The geology of Morella Crater, Ganges Cavus and the surrounding plains including Elaver Vallis is dominantly volcanic. Morella Crater contained a large picritic to komatiitic lava lake (> 3400 km3), which may have spilled through the eastern wall of the basin. Ganges Cavus is a voluminous (> 2100 km3) collapsed caldera. Morella Crater, Ganges Cavus and Elaver Vallis illustrate a volcanic link between structural collapse, formation and potential spillover of a large lake, and erosion and transport, but in this case, the geology is volcanic from source to sink. The geologic puzzle of Morella Crater and Ganges Cavus has important implications for the origins of other collapse structures on Mars and challenges the idea of pressurized groundwater release on Mars.