The Sydney pygmy pipehorse lives among the red algae of the reefs. It's skin matches where it lives. They are usually 2 inches in length. it has an internal air bladder used for vertical motion. Evolutionists admit that seahorse fossils are similar morphologically to syngnathids today. So they aren't "primitive transitional forms". The tiny Sydney Pygmy pipehorse was created as it is today-fully funtional. Besides Australia, pipehorses have been found around Papua New Guinea, Malaysia & Indonesia.
And God said, Let the waters bring forth abundantly the moving creature that hath life, Genesis 1:20