A pipe with a closed control valve connects two identical water tanks near their bottoms, which are at the same height. The one tank is full and the other tank is empty. Now open the valve and let the water levels stabilize in the two tanks, meaning you now have two half full tanks.
Originally, the water was at an average height of half a tank. Now the same mass of water is at an average height of a quarter of a tank, so half of the original potential energy (weight x height) is now missing. How does this happen?