Aground

To activate the Time Manipulator, you have to capture an Ice Spirit. I found an ice spirit traveling through the whirlpool to the side of the planet where the pirates are. Instead of going to the pirate island, travel East to the frozen island with the yetis on it. I found it on the east or right hand side of that island. You will need the dragon armor to reach the Time Manipulator. It is found on the magic island where you fight the ancient one and have all of the "living buildings" and the wyrm queen. Just above those buildings out of reach is some floating land, fly up to the bottom and tunnel your way to the top to activate it and boom goes the dynamite.

Hope this helps, I went from memory having done it last night, so if you have any suggestions/missing deets please leave a comment and I'll update and credit you.

Thanks!