Queen Squid

The Queen Squid was the proposed "main antagonist" for all of WatchmeX. Supposedly she was the one who psychically intervened in all the hero's doings, such as convincing Jon Osterman to work on the technology that would turn him into Doctor Manhattan, along with convincing a certain murderer to kill a little girl and rape her, sending Walter Kovacs on his path to becoming Rorschach. Supposedly she also psychically convinced Veidt to create the Giant Squid that would cause November 2nd and thus bring about her own undoing thanks to the squid's psychic backlash. This would mean she is also responsible for the creation of the Evil Squid Empire, which would explain their allegiance to her. 
==WatchmeX==
The Queen Squid wasn't mentioned much for the first few storylines, merely being implied by Doctor Manhattan and Rorschach. However around the end of Volume 2 and all the way through Volume 3 she makes herself known as the true cause of the world's misery and destruction. It is also discovered that those who were mentally altered by the November 2nd's squid were immune to her telekinetic abilities. This included Silk Spectre II, Shade Master, most versions of Doctor Manhattan, and the The Comedian, whose experimental lobotomy surgery (received during the Silken Red White and Blue story arc) also seemed to negate any mental influence.
In Volume 3 it is revealed that Laurie's child is in fact a spawn of the Queen Squid. In order to prevent the world's destruction Laurie wound up sacrificing herself, giving the heroes enough time to reverse its Timestream Standing. The Queen Squid's mental powers backfired against her, causing her brain to implode and her body to die. 
It was later revealed by Doctor Manhattan that Kitty Genovese's death had left her mental thoughts to imprint on the universe and that she was the Queen Squid. All this time she had wanted nothing more than vengeance for her unjustified murder against the world that had just watched her die.
==Implied Return==
It was implied by the end of the exceedingly rare volume 5 that the Queen Squid would return for a final showdown with Rorschach (who would in turn be forced to come to grips with his own dark nature); however by this time WatchmeX was canceled and all loose ends were left the way they were.