I did #2!! I started by getting rid of the neon green, since it wouldn't fit with what i had in mind. I decided to replace it with a pink that would go a lot nicer with the now desaturated red. I took that spotty pattern from the squid? hat? and put that all around the body as the main pattern. I then took the yellow and distributed it around the design more in the form of spots. Then i changed the saturation of the blues and done!!

LETS GOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOO