In this article, we study quasimaps to moduli spaces of sheaves on a
$K3$
surface S. We construct a surjective cosection of the obstruction theory of moduli spaces of
$\epsilon $
-stable quasimaps. We then establish reduced wall-crossing formulas which relate the reduced Gromov–Witten theory of moduli spaces of sheaves on S and the reduced Donaldson–Thomas theory of
$S\times C$
, where C is a nodal curve. As applications, we prove the Hilbert-schemes part of the Igusa cusp form conjecture; higher-rank/rank-one Donaldson–Thomas correspondence with relative insertions on
$S\times C$
, if
$g(C)\leq 1$
; Donaldson–Thomas/Pandharipande–Thomas correspondence with relative insertions on
$S\times \mathbb {P}^1$
.