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The Earthworm is a chameleon in ATLAS. It changed appearance for the third time in 4 months. Devs are trolling here?
Earthworms can be found by digging into soil (same places you can get water) with a Shovel equipped if you use left or middle mouse button. This will get you earthworms, minor amounts of resources, such as Hemp, Roots, Limestone, or rarely Gold Coin, but some squares only give hemp and potatoes near water.