 Squidward is depicted as a bitter , very unfortunate , desperate , curt , arrogant , turquoise octopus . He lives in the underwater city of Bikini Bottom in a moai situated between SpongeBob SquarePants ' pineapple house and Patrick Star 's rock . Squidward detests his neighbors for their perpetual laughter and boisterous behavior , though SpongeBob and Patrick are oblivious to Squidward 's animosity towards them and regard him as a friend . 
