The squid was dead but the spermatophores were not.

http://news.yahoo.com/blogs/abc-blog...ws-health.html

That would have to be awfully fresh squid. Most
people will never see squid that fresh. However,
you may notice a rough surface inside the hood of
squid you buy. That's the same phenomenon. It
indicates the squid is a fertilized female. You
can go ahead and eat those squid. When I first
encountered it, I didn't know what it was and
threw them out. That was a waste of squid.