Other mistake: When Ariel hugs the adult Flounder, his eyebrows suddenly turn blue, then change back.

The Little Mermaid II: Return to the Sea (2000)
1 other mistake
Directed by: Brian Smith, Jim Kammerud
Starring: Tara Strong, Samuel E. Wright, Pat Carroll, Jodi Benson
Continuity mistake: When Morgana traps melody in the cavern, Flounder is seen in his younger size. The next time Flounder is seen he is back in his adult size.
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Answer: King of the Sea does not mean psychic powers that allow him to be able to snuff out everyone's location. Only power he has is through the trident, which obviously cannot pinpoint location as he couldn't find Ariel when she was missing. It's likely the humans have no idea of the family's mermaid history, because yes, the snotty kids probably would have greatly teased Melody for it.