Mimick octopus

It grows up to 2 ft. Their tentacles are around 25 cm in length and no more than pencil thick. It was not discovered officially until 1998. Based on observation, the mimic octopus may decide which animal to impersonate depending on local predators. For example, when the octopus was being attacked by damselfish, the octopus was observed to appear as a banded sea snake, a damselfish predator. The octopus impersonates the snake by turning black and yellow,burying six of its arms, and waving its other two arms in opposite directions. The mimic octopus lives exclusively in nutrient-rich estuarine bays of Indonesia and Malaysia full of potential prey. It uses a jet of water through its funnel to glide over the sand while searching for prey, typically small fish, crabs, and worms. Mimics stalk their prey or the mimic octopus often by covering an area of sand under a disc of webs while using the tips of its fine arms to flush small animals into its suckers. It can probe its arms deep into burrows or holes to search for prey which it can then pass to its mouth. This octopus mimics venomous sole,lion fish, sea snakes, sea anemones, and jellyfish.  For example, the mimic is able to imitate a sole by pulling its arms in, flattening to a leaf-like shape, and increasing speed using a jet-like propulsion that resembles a sole. When spreading its legs and lingering on the ocean bottom, its arms trail behind to simulate the lion fish's fins. By raising all of its arms above its head with each arm bent in a curved, zig-zag shape to resemble the lethal tentacles of a fish-eating sea anemone, it deters many fish. It imitates a large jellyfish by swimming to the surface and then slowly sinking with its arms spread evenly around its body. its scientific name: Thaumoctopus mimicus. Their preferred habitat is relatively shallow water normally less than 15 metres deep where there is a sand or silt substrate, so often this means near river mouths or estuaries. Unlike other reef-dwelling octopuses habitats, there are not hiding places galore within the habitat. Despite this, the mimic forages in daylight which one would expect makes this soft bodied, non venomous creature a prime target for predators. However the mimic clearly thrives in its environment and many believe this boldness is possible only because of its ability to impersonate other venomous creatures.
In mating, the male octopus inserts its hetocotylus, a specialised and extended arm, into the female's mantle cavity, where he deposits packets of sperm. Soon after the hectocotylus falls off and before too long the male will die. The female fertilises, and then carries the eggs in strings while continuing to feed, a feature unusual for octopus. The larvae hatch and shortly thereafter the female dies. The larvae drift as plankton until they mature, when they sink and begin life on the ocean floor.

http://www.youtube.com/watch?feature=player_detailpage&v=t-LTWFnGmeg

Sources: , http://www.dive-the-world.com/creatures-mimic-octopus.php, http://en.wikipedia.org/wiki/Mimic_octopus.