Yes it is the Colossal Squid, aka Mesonychoteuthis hamiltoni in all of its fantastic ship-crunching glory. These are actually real creatures - a few of them have washed up on shore, like this sad specimen. Scientists also know of them because of the giant suction marks seen on Sperm Whales.
Are they big enough to crunch entire ships and bring them under to their watery graves? One can only imagine.
And check out the other Day 8 participants here - some pretty snazzy stuff going on.