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I was spitballing an idea for a Fire/Fairy type, and one idea was based on the mythological Jengu from Africa. Only instead of living in rivers and oceans, it lives in the bottom of volcanoes and warm bodies of water. Though the Jengu is a very feminine species, so it'd probably be female-exclusive (or primarily female).
The base form would be a squid-like thing called Jenguid (jengu + squid), and its evolved form would be more mermaid-like and be called Jenguine (jengu + wahine, Hawaiian for woman).