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I don't think Swash has an inside source, he simply said that the pirate in the pictures had 55HP.
I don't think pirates that can only play on the open server are getting it. If the Kraken was out, he would be on the test server first and there would be release notes for it. Within days there would be information about the Kraken on the pirates site. So... these "Kraken Sightings" are either by people that take the game too seriously, or they're from people that want a good laugh.
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