Yeah, looks dead or nearly so to me. I'd expect it to have some reaction like wrapping it's tentacles around to hold on.
So incredibly stupid to do and to put a video up of it like you don't need to worry about blue-ringed octopus biting is irresponsible. Hopefully someone doesn't see that and try it with a healthy animal. They're my favorite octopus but I'd never handle one, especially not with bare hands.
Edit: Looking at it again that's is very large for a blue ring so it might be a different species.
The Exotics and Rare Species forum is only accessible when logged in, so search engines and guests cannot access its contents. We think this helps limit the exploitation of these delicate / poorly understood creatures. Please treat this information with care!