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The Lost Fleet (aka the Doomed Fleet or the Third Fleet) are the remnants of the Third Fleet of Kul Tiras who were under the command of Derek Proudmoore. They were destroyed by the Dragonmaw clan and subsequently sunk in Baradin Bay off the coast of northern Bluegill Marsh.
Some say that the ships are cursed and that the reason for the crew's undeath is a dark orb hidden deep in the cargo hold of one of the ships. The curse affects anyone trying to locate the orb, transforming them into an illusionary undead form and weakening their spirits. Fortunately, the curse seems to only be permanent on those who are truly dead.