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They’re seeds (sperm) that look like eggs (ova). One of them is cracked (retarded). Gamefreak is implying that trans people are mentally ill and evil. The fact that they evolve into a palm tree is supposed to represent how Masuda thinks Hawaiians are also mentally ill and evil due to getting mugged by a man in a Hawaiian shirt (the man was Puerto Rican and the mugging occurred in New York).
