I think this is the highest rating I've given something so far. The town feels really alive and just seething with secrets waiting to be uncovered. I could see the web of connections getting a little overwhelming for some GMs, but you provide a lot of strong details and characterization that makes it lock pretty well into place (and it's likely that PCs won't follow every single thread in its entirety).
The torn front cover is really clever. The town map is really readable and clean. The town events make great hooks (or clues for a party feeling lost).
The way the kraken interacts feels original and compelling (so much more than a big, monstrous squid).
The layout is clean both overall and within paragraphs/sections. Having the cave offset with the black background is pretty great.
The spaces to add stuff (like a cave-crawl or psychic kraken influence mechanics) feel present without feeling essential.
For a pretty short adventure, I honestly could go on and on about the good things in here. I really hope I get a chance to run it before too long.