The H.M.S. Victoria was a British ship that was operating during World War II and was responsible for moving top secret cargo, which later was found to be the Dagger of Poseidon.
The ship was commandeered by Captain Kraken, who took a thorough dislike to Colonel Fortesque's refusal when he requested to see the cargo, even implying that he would kill Fortesque if continually denied respect. Upon finding they were transporting the Dagger of Poseidon, Kraken expressed his rage in his diary entries and stating that the ship was doomed and that he would take the dagger for himself.
Kraken and his crew attacked Fortesque and his men at the height of the storm, with Fortesque and Kraken facing directly in the battle. Fortesque managed to plunge the dagger into the belly of Kraken but during this Kraken had swiped off Fortesque's head with a cleaver. As the commotion continued the H.M.S. Victoria sank and the crew and soldiers continued to fight in the afterlife.
Kraken, after death, sat in the bowels of the ship, gathering slime and absorbing the souls of his crew which at some point led him to become the monster he is seen as in game.