The quantum dynamics of particles optically trapped in a symmetrically pumped high-Q ring cavity exhibits much richer physics than for a standing-wave resonator. In addition to modifying the lattice depth, light scattering by the particles shifts and reshapes the trapping potential. We calculate the corresponding changes in tunneling amplitudes and damping by an effective bipotential (two-level) model for the particle motion. As a crude truncation of the Bose-Hubbard model, expansion to the lowest band decouples particle and field dynamics. Only including excitations to higher bands can capture this essential additional physics and correctly describe decoherence, damping, and long-range correlations of the particle dynamics. The validity limits of the analytic models are confirmed by quantum Monte Carlo wave-function simulations, which exhibit correlated particle-field quantum jumps as unambiguous quantum signature of the system dynamics.