Once upon a time the shiniest of coelacanths made a house of watermelon in new mexico. Feeling lonely she created the friendly squidwards. The squidwards and the shiny coelacanth frolicked until dusk.
Then, the squidwards in their infinite knowledge, rushed into her tiny watermelon house. Those that could not enter, which was most, stood on the roof and around it.
The shiny coelcanth was pissed she couldn't go into her house either so she destroyed the floor and poured lava below it, killing the thousands of squidwards in fire.
They say that the ghosts of squidwards live under Fort America still, moaning and bitching about the remains of Mexico.