A problem in Grasstown?

I've already played Cave Story 9000 times, but I started over again yesterday and, the way I just played, there seems to be no way to get the necessary items. After I entered Grasstown I nimbly hopped over Chaco's house, then got the key from Kazuma, and was instructed to collect the materials for Malco's custom explosive.
But my shortcutting caught up with me, I gave Santa his hey back, but he only offers me coal, and Chaco only asks about Santa. I can't progress any further!
Can I?

 

Someone already did it, i think it was noxid who pointed out that a flag is set, stopping chaco from spawning the jellyfish.

 

I've already played Cave Story 9000 times, but I started over again yesterday

It's over 9000?

and, the way I just played, there seems to be no way to get the necessary items. After I entered Grasstown I nimbly hopped over Chaco's house, then got the key from Kazuma, and was instructed to collect the materials for Malco's custom explosive.
But my shortcutting caught up with me, I gave Santa his hey back, but he only offers me coal, and Chaco only asks about Santa. I can't progress any further!
Can I?

Known bug. Sorry but you may have to either restart your game or hack your save file to manually edit the required flag. *shrug*

 

I should have known that.

 

Which means the coolest shortcut ever is a doomtrap. Perhaps it should be an official warning for this somewhere? I've spotted it being mentioned three times during today's posting, this glitch.

 

That happened to me too.

I just used Ultimate Doukutsu Trainer to give myself Jellyfish Juice.