Far from really being knowledgeable on the topic but man that is an odd one to me. Bear in mind the source of anything I know about eels is "the internets" and not "the books" (trying to sound a bit like dubya there, not sure if that really got through or not though
). But I've never heard of any species of eel or moray with the name "pygmy" in it other than Gymnothorax melatremus, but even then it's more usually called "golden dwarf", not "golden pygmy". But for what it's worth, the range of colours for a golden dwarf include a little bit of pink so I wonder if there's a chance it could be that. But from everything I've read, there's no way they are found in Brazil - it is a Indo/Pacific species.
The clincher would be the eye colour, IMO. If the eyes are blue then it is probably a golden dwarf, and the "Brazil" part of the name is just wingnut mistake.
Another possibility I'm thinking is maybe
Gymnothorax miliaris, canary moray or goldentail moray, which is a Tropical Atlantic species, but at a max size of 70cm apparently, I don't think that truly qualifies as a "pygmy".
I'd sure like to come see it. I'll try to play hookey this afternoon perhaps and come pay you guys a visit.
