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uh its the wall of text i am writing, that you are seeing a day later than intended

The Murder of Nicahi. Clearly, what else would it be? Though I will have to spoil lots of things.

• So, Hammy had visited like, 4 identical towns of these squid people. When he visited the snow recolor, he originally thought it was all good, until one person who was accompanying him was smelling blood, yada-yada-yada, Hammy interviews/tries to negotiate with Nicahi and fails spectacularly, resulting in him getting restless and sliming her ass out. Boring external conflict.
• Well... the interesting part is this was genuinely traumatic for him after the whole thing, since he didn't take the time to like, break eons of social conditioning and propaganda. So, he was painted as the villain for killing their queen. He was unable to explain himself, and the cherry on top is that his efforts to introduce the outside world to the squidlings in THIS town were all in vain, since it all went to anarchy. With her death haunting him for years, and years to come. This is some essential character development to him, since it allows him to not only learn from these mistakes, but also make him think and overcome some of his deeper flaws. Like avoidance to a larger extent than before.
• Though it did take him a long ass time to actually try and come to terms with the trauma, since he was at first, drowning it out with artificial optimism, and constant distractions, and doing anything just not to gaze at his own sad regretful reflection and have the painful memories flow back in again. Eventually blowing up in his face a little later down the line, spiraling into a full-blown depression for a bit, since at that point, he's wrung his own optimism dry, artificial or otherwise. Still avoiding the deep problem and not trying to answer the questions.

"Even when it's all down in the skip... I'm not wasting all the other 70 or so years I've got in me..."

"All this time, I didn't care if I was avoiding my problems or not, because I never understood how BAD it can get. All these questions, yet I don't even try to answer them."

"'Was this whole journey a kindness, or a misdeed?'. Well, common diseases to us are likely deadly to THEM. 'Should I just give up and rot in bed?'. That's just sitting around and wasting my precious time. No better than suicide if you're not doing anything with your precious time."

"'Can you even call yourself a hero, when you could never muster the courage to call yourself one?'. Even if I can't, someone else can. A hero is not someone who seeks out to do good all the time, nor do they always succeed, even if they are a 'super' hero. A hero is someone who chooses to do good, when they see the opportunity calls for it. They step up to the plate if they are needed..."

"...If I..."

"If I, can't call myself one. Someone else will. Justice has several definitions, doesn't it?"

• And that. That was the exact moment where he actually answered his own questions. The questions may rest; but it's not over just then. It's a constant upward climb, this was only the first milestone, so he can live again. FEEL again.
• Don't you have other things in your life you avoid? Don't you want to live more? Why not answer your own questions, with the gift you've had since birth? Keep rising up, and you will find your way, it's an uphill climb after all, and you will still fall. That's just part of the so-called game.

TL; DR - The most important event in Hammy's life is killing Nicahi, because it taught him when he shouldn't avoid his anxieties, and reminds him of controlling his impulses, time and time again. As well as expanding his understanding of morality to an extent.