Giant and Colossal Squid

http://unmuseum.mus.pa.us/colossalsquid.htm

The Giant Squid is a creature straight out of mythology, but it was recently discovered that a larger squid, the Colossal Squid exists. It is likely that the myths originated from the fact that the giant and colossal squids visited the surface when the temperature was lower. the giant and colossal squids live in deep water, where little light reaches and even less heat. Therefore the giant and colossal squids have acclimatised to low temperatures. 

It is unlikely that the giant or colossal squid ever attacked ships like the Kraken of legend - it would be too little food for the amount of energy required. It is far more likely that sailors saw the colossal animals and exaggerated stories of size. It is likely that the squid would simply flee from the ship.

The Colossal Squid has the largest eyes in the animal kingdom. They need to be large to see in the depths. Both the giant squid and the colossal squids have hooks on their suckers so as to ensure that prey doesn't escape.

The Colossal Squid also has a unique beak. It can become move between solid like a bone and fluid, like the rest of the body. This allows the squid to move to deeper depths and still effectively kill animals.