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The Garigantian have lived with the sea Hideauze for long time, and still have a pleasure life with festival and belly dance, which means there have no clear proof that those giant squid will attack them actively.
When you live around with dangerous animals which rarely show hostility, 1) leave them alone if you can not beat them. 2) use your power to defend yourself if you can.
So why would you think it's a good idea to kill them all.