The Oil Pit Squid, as its name suggests, is a weird sighting of tiny squid-like creatures in oil.
In 1996, workers cleaning a sludge pit in Anderson, Indiana at the GMC Delphi Interior found strange grayish-red squids of 6-8 inches in length swimming around in toxic liquid amongst antifreeze and automobile parts. One was caught and put in a jar that was stored in a factory, But disappeared before further research was done. No more specimens were found even after the pit was cleaned and inspected.
And though this sighting has baffled people for years causing people to believe in alien spores, they could have been mutated earthworms or massive bacteria growth, or possibly a hoax.
A worker stated "I live in Indianapolis. There is a manufacturing town called Anderson about 20-30 min north of the city. This story was originally told to me by a guy that I work with and lives in Anderson. At the Delphi plant they had a tank they used to store byproducts and chemicals from making bumpers. They found several squid like creatures in this toxic goo. One apparently had an eye. The specimens were taken and no one ever saw them again. No word was ever sent as to what is really was. There were a few of them. They apparently were somewhat transparent and resembled squids. About as big as your hand. These chemicals would not be conducive to any kind of life. It's called the oil pit squid."
According to Mysterious Creatures: A Guide to Cryptozoology, by George M. Eberhart, workers cleaning a sludge pit at GMC Delphi Interior and Lighting plant (Plant 9) in Anderson, IN, found several grayish-red, tentacled creatures about an inch in diameter and 6-8 inches long swimming in a goo of oil, antifreeze, and various other chemicals that were used to manufacture plastic car parts. One was placed in a jar, but sat in the factory for a month before anyone in management attempted to send it to a lab to be examined, at which point the specimen had vanished into a garbage can or perhaps a curious employee's glove compartment. The following year, no such creatures were in the sludge pit upon cleaning.
The Oil Pit Squid could be an alien spore, a massive bacteria growth, or a mutated earth worm. It could be an unknown parasite similar to a Water Bear, or a fish like-creature.
The anomaly originated from a tabloid article, so is therefore a hoax or possibly a made up story.