After finding the Fisherman's letter in Prisoners' Quarters, you went too the Toxic Sewers and found the Fisherman. He instructed you to go to Stilt Village. While there you enter a room where you find a Elite Armored Shrimp. Once you kill it, you find Michel's corpse, and a ball of fleash, spike's, has tendrils of fleash and spikes attached, one big eye. forces itself into you're bag, causing the previous items inside too fall too the ground. It thinks that you're it's parent