Prepare an 8x8" (or slightly larger) baking pan by lining with parchment paper and coating generously in coconut oil. Set aside.
Pour 1/2 cup of water into a small bowl and sprinkle the gelatin over top. Stir gently to ensure the gelatin is combined. Set aside to allow to harden.
Using a medium-sized pot slowly heat the honey combined with the other 1/2 cup of water. Slowly bring the temperature to 235-240 F degrees on low heat. Remove from heat immediately once the mixture comes to temperature.
Begin whisking the gelatin mixture either with an electric hand mixer or in a stand mixer. Slowly add in the honey mixture and keep whisking for 10-12 minutes. The marshmallow mixture should be lukewarm, thick, and marshmallow peaks should start to form.
Stir in the toasted coconut flakes and mix until thoroughly combined.
Pour the mixture into the prepared pan and place in the fridge to harden for at least 4 hours.
After the marshmallow solidifies, carefully remove from the pan and place on a cutting board. Generously grease a sharp knife with coconut oil and slice the treats in 9 bars (or more for smaller treats). The bars will be hard to slice, so add more coconut oil as needed, and use a slow sawing motion with the knife. Note that the bars will be soft (like a marshmallow) and the "crispy" element comes from the toasted coconut.
Store in the fridge and enjoy!