Is that a real character?

[Gaulbetti]

Well, I was playing at that Amusment stage Mr. Kotik just shared and well:

 

I would like to know if that red squid in the background is a real character, seeing as many of the characters in the background are real and/or sprite edits. If it is real, I would like a link. Thanks in advance.

[Laharl]

http://mugenfreeforall.com/index.php?/topic/10524-does-this-exist-whos-the-author-of-this-creation/