Tip: You can use Lunar Magic's Overworld Layer 3 Editing system to edit or create your own layer 3 images (castle bricks, fish, rocks) and apply unique effects per level via the Layer 3 Bypass in the main editor.
A second update from me (authorized by Blind Devil) to add an option to have the sprite die immediately (just like any normal Super Mario World sprite) instead of falling to the ground and then dying after a couple of seconds. Check the ASM file for details.
Fixed squished state sprite interaction with the player, as it was possible to capespin, kill it with fireballs/kicked sprites or eat with Yoshi during this state. Removed unnecessary code. Added screenshot, tags and SA-1 support.