Squid

Squid is a passive mob commonly found in the first level of the Underwater World, called the Kelp Forest. When killed they drop 2 Dessicated Tentacle, 1 Salt, a small chance to drop a Sucker and an Ink Gland.

It can be seen just idle or moving around the map at a pretty fast speed for the underwater.

Behavior
Squid tends to stay away from fights and when attacked it will flee the scene.

Even though the squid is always up and moving, it does follow the day-night cycle like other mobs in the underwater. During the sleep-cycle, it will go to sleep in his shell which, for a limited amount of time, will give him a 2x damage resistance boost.

Once awaken, the squid will flee the scene away from the player.

Hunting
Hunting Squid is a pretty easy task for newbies and experienced players alike. Just try to hit it a couple of times and that should deal enough damage to kill it with most weapons. Then just wait for it to get away enough for it to feel safe, and hit it again. Waiting for it to sleep is also a great opportunity to deal a few hits before it can flee away.

Even though the loot is still working in progress, the Ink Gland and Sucker will be needed to craft some advanced diving gear to stay longer under the surface.