Attack Squids can cause temporary blindness... and they do have some nice rare gold item drops... but you can't risk killing them yourself. Why? Well, because there is a chance one of them will call home for Dad, the Kraken!
Cause temporary blindness
Can call Kraken when killed by a player
How to Kill
If killed by a player, there's a chance they'll call home… Find yourself a Girlfriend or a Baby Dragon, or even better yet a Lizard, to kill Attack Squids for you. Well, ok. Go ahead. Kill Attack Squids if you want. Just remember to run when Daddy comes after you... That or make sure you have a Kraken Repellent handy!
Found: in the water
Drops: rare gold items, ink sacks