Nils Hjalmar Odhner, discoverer of the species, suggested that Parateuthis tunicata, discovered by Johannes Thiele in 1920, might be a young Antarctic neosquid.

The name is derived from its habitat in the Antarctic Ocean.

Alluroteuthis antarcticus occurs in from depths of 0–2,800 m (epipelagic and mesopelagic waters), and paralarvae can be found in the upper 200 m (epipelagic waters).

[1] Its range may be circumpolar with an Antarctic and Sub-Antarctic distribution.

[1] However, Isotopic evidence suggests a diet in prey that are likely mesopelagic zooplankton that feed on sinking organic matter.