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From Otto's memoir.

...The title of Squid has been passed down among the kids who have lived on Ozone Street from time immemorial, probably from when TV signals only came through antennas. Anyway, it generally came to rest upon the youngest, lowest-seniority, and/or least-experienced member of the peer group. Who the first Squid was may have been lost to antiquity. The previous holder of this sacred office was my best bud Twister Rodriguez and when Sammy Dullard moved onto the block, it passed to him...
it is also a place holder and easy to identify the new kid of the group until a proper nick name has been given ie: from squid to twister or squid to slamin sam