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Lusca

From: http://en.wikipedia.org/wiki/Lusca

The lusca is a name given to a sea monster reported from the Carribean. It has been suggested by cryptozoologists, that the lusca is a hypothesised giant octopus of immense size (Octopus giganteus). Many reports of the creature are from the blue holes, off Andros, one of the Bahamas. They are not to be confused with the known giant octopus, which is a member of the scientifically defined genus, Enteroctopus, and grow to about thirty feet in size.

The Lusca said to grow over 75 feet long, or even 200 feet long, although many skeptics dispute these claims as there are no proven cases of other species growing to half these lengths. Also to attack properly on the surface, the octopus would have to have one tentacle on the sea floor to balance itself, this would mean that such accounts, if real, would have to take place in relatively shallow water.

Other descriptions also mention that it can change colour, a characteristic it has in common with smaller octopuses. The supposed habitat is rugged underwater terrain, large undersea caves, the edge of the continental shelf etc, where large crustaceans can be found, which it is supposed they feed on.