(Screenshot from Episode:Truces and Consequences)
In the episode "Truces and Consequences", the Squid Bars were given out to people around Nice-Nurse Goodboots by herself to hypnotise them into following her "nicely-nice" ways(in simple terms: be the same and not different and lose things that make you who you are). They can be taken out of hypnosis by eating Ducky food like the Squid Finger Surprise.