It's a wild story, but for those unaccustomed to staring at squid innards, the photos may not be particularly striking. Therefore, I provide this helpful contrast: the reproductive organs of a male Humboldt squid. (Note that the penis is hiding slyly underneath one of the gills--but still, it's nowhere near Onykia-sized.)
Male Humboldts do have a specially modified arm that they presumably use to hand over those needle-like spermatophores to the female. I say presumably, because mating in this species--like so many others--has never been witnessed.