I don't really think we should take comical flavor text clearly meant to be a joke as a serious entry to lore, though. SE has a big history with throwing things in their games just to justify an action/event/whatever that doesn't need to be. The cephalopod seems to be more a joke name than anything else, an allusion to the real world myth rather than anything in game.
That's my take from it, at least
That's my take from it, at least