By the time I set up my base down there the crabsquid was no longer a threat for my upgraded seamoth. But it's good to have him there. Felt too lonely without him. Also fits the place.
yes it is, if look at the machinery update video the first part is that player is a cyclops and the Crab squid is swimming to player if you look around its in grand reef
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Agreed, the only threat there was drowning.