Much like the awkward turtle, the awkward squid is performed during an awkward moment. It is done by placing the tips of the fingers of the right hand on the back of the left hand. The fingers of the left hand then contract like a squid's tentacles and the hands are brought back together three times.
Person 1: Dude, last night was awesome, I got so trashed.
Person 2: Yeah man, me too.
Person 3 enters: Well, I just ate my own poop.
Person 1 & 2: ... (awkward squid is performed)