User blog comment:Lord Loss/Monster Hunter Theory... Blog/@comment-6050823-20131125222025/@comment-1011548-20131126163312

Octopus change mimic their environment by having specialised sacs in the top layer of their skin. Inside each sac is a dye, a pigment, surrounded by muscles that pull the sac either tight or wide. Obviously, if its wider you can see more of that particular colour, less if its narrower.

These are contractions and relaxations are controlled by nervous impulses, which I think is what Capcom are getting at when they say electricity. An electrical impulse.

Incidentally octopuses also have iridophores in a lower layer of their skin that reflect light from their environment, helping them blend in even more. Wouldn't be surprised if Chameleos had something along those lines.