I recently lost one that I had for six years. There are some nutritional problems that can lead to deformed raptorial appendages, but generally they do well in a tank. They do molt frequently (every couple of months) and must be kept in a burrow. Large adults actually can't secrete enough mucus to build a burrow, so the ideal tank situation is about 4 feet of pvc running along the bottom of the tank or under the plenum with pieces about the length of the animals leading at about 75 degrees to the surface. I kept one in a tank that was 30 x 30 and only 4 inches wide. I used a 3 inch piece of pvc bent into a U and with about a quarter of the side planed off I smeared the inside of the burrow with silicon cement, then packed it with sand. When dry, I washed out the sand and cemented the cut-away burrow to the side of the tank, then filled the tank with sand to the level of the openings. The burrow looked very realistic and with black plasting against the glass, the animal was happy inside. I then gradually increased the sand level in the tank so that eventuall the last two or three inches were sand/mucus constructed by the resident. The tank was ganged to a 200 gal system and worked well. One of these days I'm going to collect a pair and put them into one of these setups so I can observe who cares for the eggs, etc.
Roy
p.s. Sorry this wasn't about octopus, but I have actually used this same tank for sand burrowing horridus (sp?).