Start a new document of size 300x300 px. Create a new layer and draw a rectangle using the rectangular marquee.

Now fill the rectangle using the following gradient. You will get something like this.

Now we need to make a sharp tip for the bar. To do this go to Edit>Transform>Perspective. Here you need to pull the down block that is show here in orange to it's right so that we get a sharp head.

Now we need to twist the cone in order to get the tentacle effect. To do it go to Filter>Distort>Shear.

Use the following settings now.

This is what I got.

It's done you can duplicate the layers to get more tentacle and you can add more effects to it too.

This is what I got as my final result.