The body of 27-year-old Scott Johnson was found at the bottom of a 60-metre cliff at Sydney's North Head.
The first inquest into his death ruled he killed himself, while a second in 2012 returned an open finding.
Mr Johnson's family had lobbied hard for the latest inquest, believing he was murdered in a gay-hate crime.
News that makes sense
Your trusted source for staying up-to-date with the world around you. Get free daily news updates and analysis, straight to your inbox.
The court heard Fairy Bower beach near North Head was a "social" beat where up to 60 people would visit daily to "cruise around" for sex.
Long time local Robert Reed also volunteered as a lifesaver and park ranger at nearby Reef Beach.
"You could see people like little rabbits bouncing around," he told the court. "You'd only have to lay your towel down to sunbake and you could see them."
The inquest was told there were several assaults at Fairy Bower beach and Reef Beach in the 1980s and 1990s.
Mr Reed said a gay couple had told him they witnessed "a guy being bashed... and pushed off a rock ledge".
Ulo Klummer, a former gay outreach worker who frequented the Manly area in the 1980s, said there were reports of violence from time to time.
"It was talked about within the circle," he said. "But reporting to police was a different matter altogether."
Witness Michael Antares also told the court there were conversations about bashings among peers on a regular basis.
He had also heard Fairy Bower was a frequent place for people to end their lives.
The inquest continues tomorrow.
