Fans of the comic book series were upset when it was first leaked that the giant squid which appears in the climax of the comic would not be appearing in Watchmen. However, the good folks at CHUD realized that perhaps the squid would be appearing in the film - just not in the way that might be expected.
Instead of a giant alien squid whose appearance triggers the events of the comic's climax, in the film Dr. Manhattan and Ozymandias are working together on a project that would replicate Manhattan's energy to provide cheap, unlimited power to the entire world. If you look closely, you'll see that the name of the project - visible in a quick shot of the logo - is SQUID.
When director Zack Snyder was asked about the inclusion of the squid, Snyder said "I'm glad you caught that." He also revealed that SQUID is an acronym for "Sub QUantum Intrinsic Device."
If you want to see how exactly the SQUID works in the context of the film, you'll be able to see for yourself when Watchmen hits theatres on March 6.
Directed by Zack Snyder, Watchmen is based on the 12-part DC Comics series written by Alan Moore and featuring art by Dave Gibbons. Starring in the movie are Patrick Wilson, Jackie Earle Haley, Matthew Goode, Billy Crudup, Jeffrey Dean Morgan, Malin Akerman, Carla Gugino, Stephen McHattie and Matt Frewer.