How to Make It
Cut watermelon into 12 (3- x 2 1/2- x 1/2-inch) wedges with rind attached; set aside. Reserve remaining watermelon for another use. Stir together coconut water, lime juice, ginger, 2 sliced chiles, and 1/2 tablespoon sugar in a 13- x 9-inch baking dish. Place watermelon wedges in dish in a single layer; cover and chill at least 2 hours or up to overnight.
Just before serving, remove watermelon from marinade; discard marinade (or strain and reserve for cocktails). Arrange watermelon on a chilled serving platter; drizzle with olive oil. Top watermelon evenly with coconut, fried shallots, and remaining chile slices.
Stir together cilantro, flaky salt, lime zest, and remaining 1/2 tablespoon sugar. Sprinkle over watermelon. Serve immediately.
For a refreshingly cold bite, chill the serving platter in the freezer for 15 minutes before plating the crudo.