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.
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