... And it is alive! I am at work so i got to rush this one. This creature was originally spotted at NotCot.org where I said to myself, "yeah, i am going to share it," and all of the above websites found it at... where else? Pink Tentacle.com
Go to Pink Tentacle and see a photo of it laying eggs. I bet this creature would not have survived in the wild, but since it is both creepy and "cthulhu-like" it's gene pool will live on as we humans make a new race of chimeric octopi simply for our viewing pleasure. [Link]
If you don't believe me, just look at any chihuahua! How did natural selection come up with THAT!