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I haven't seen a squid since about a week after the patch that added them. I have a "water wall" around my base, and I frequently scan the large "ocean" outside my base for movement, but no luck.

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Have you checked at the bottom of the large "ocean"? Squid generally sink to the bottom. – Arkive Feb 15 '11 at 4:13

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Squid cannot swim upwards, so they tend to sink. In my personal experience, they don't seem to spawn well in shallow water at all, so you will likely have to look down deep to find them.

The wiki mentions that an easy way to find squid is to stare into a large body of water and rapidly hit the fog distance key (F3+F).

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I'm starting to think asking is what got them to spawn..scouring the depths I found several. Then I found several in my 4 block deep water wall. Then I found some in my one block deep Lapras mosaic. – Matt Miller Feb 22 '11 at 0:31

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