New Document

Make a new document, anysize doesn't matter. Press CNTRL+D to reset your pallete colors. Start off with any color of background, I used white.

Polygonal Lasso Tool

Starting with the Polygonal Lasso Tool we want to make a triangle selection like below:

Now move along by making a New Layer. Fill the selection in with BLACK.

Apply Filter

Now go to Filter>Distort>Shear and use these settings:

Blending Options

We got the tentacle shape now, right click the tentacle layer and go to Blending Options and add all these settings:

Go to here to learn how to make the pattern effect, few simple steps:
http://www.n-sane.net/tutorials/interface_hole/index.php

Touch ups

Fool around by making new triangle shapes and copying the layer style over to get a mass of tentacles like below I also did a few touch ups on the gloss: