The story is that: after the splatfest, in which team squid won, Octo ninny went back to deepsea metro and planned to destroy all squids because she thinks that they're racist and evil. she reconstructed the huge cannon that commander tartar made to destroy inkopolis and let all octolings take it over. your squid has to be merciless to get the good ending. if they die once more after losing 2 lives or surrenders, you will get the bad ending in which octo ninny fires the cannon and inkopolis is ultimately destroyed. there is a neutral end in which octo ninny dies and inkolopis is saved (although it's still not exactly the best ending since the cannon fires anyway and misses inkopolis square, but hits inkopolis plaza instead) the good ending is when octo ninny is spared, and the cannon is taken down afterwards. however, the good ending will cause octo ninny to become super depressed, and never come back to inkopolis. you can theorize what happens to her after that ending.
HIiiii