The Coconut Octopus is found on sandy bottoms in bays or lagoons. It frequently buries itself in the sand with only its eyes uncovered. It lives in an area off Sulawesi, Indonesia, where the sandy bottom is littered with coconut shells. The bipedal motion appears to mimic a floating coconut.

The Coconut Octopus uses tools for concealment and defense by gathering available debris to create a defensive fortress.

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