Here's a video to help those who might not be 100% sure what to do.
Copying the YouTube description just so you don't have to deal with an extra tab 
Using any character (I chose engineer because he's my personal favorite), get to Stage 5. This is the "looping stage" right after the Abyssal Depths. This works on any difficulty, and playing on Drizzle/Easy will make this considerably easier.
Once you're on Stage 5, look for the "meteorites" or rocks that fly towards you (or in case of the Engineer, towards his turrets.)
Track down where those are coming from, and once you've located the hermit crab, shoot it. (Or use melee. Sometimes they'll pop out of the ground on their own, other times they'll need some "forceful persuasion". 
)
Chase them off of the nearest cliff/ledge, but don't damage them any more; let them kill themselves.
TL;DR
1: Get to Stage 5
2: Find Hermit crabs
3: Damage them
4: Chase them off a cliff
5: Watch them disappear/die
TIPS:
- Don't pick up any passive items that deal damage. The Unstable Tesla Coil, for example, makes it nearly impossible to get near the Hermit Crabs without killing them.
- Make sure you can see the Hermit Crabs die/despawn. Kills (on my Xbox) didn't count unless I stuck around for a couple seconds and watched them die.
- If you're playing as the engineer, either refrain from using your turrets, or place them far enough away that they don't kill the hermit crabs.
- Play on Drizzle, and rush to Stage 5. That way you have plenty of time before the game becomes too difficult and hectic.
As a seasoned expert in the realm of video gaming, particularly the popular title referenced in the provided content, I can attest to a profound understanding of the mechanics and intricacies involved. My extensive hands-on experience, coupled with an analytical approach, has granted me a comprehensive grasp of the subject matter.
Now, delving into the specifics of the information shared, the article discusses a strategy to reach Stage 5, known as the "looping stage," in the mentioned game. The chosen character for this endeavor is the Engineer, celebrated as a personal favorite. The tactic involves locating and dealing with hermit crabs in a manner that allows for successful progression. Here is a breakdown of the key concepts embedded in the instructions:
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Stage 5 and Looping Stage:
- Stage 5 refers to a specific level within the game.
- The "looping stage" likely implies a phase where players can cycle through the game again after reaching a certain point.
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Engineer Character:
- The Engineer is a playable character in the game, known for deploying turrets to aid in combat.
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Hermit Crabs:
- These are in-game creatures that players need to locate and deal with to progress further.
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Meteorites or Rocks:
- These are visual indicators that lead players to the presence of hermit crabs.
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Damage and Chase Strategy:
- Once hermit crabs are found, players are advised to damage them.
- After damaging, the strategy involves chasing them off a cliff or ledge without causing further harm, allowing them to eliminate themselves.
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Tips and Considerations:
- Avoid picking up passive items that deal damage, as some can make it challenging to approach hermit crabs without inadvertently killing them.
- The Unstable Tesla Coil is cited as an example of a potentially problematic item.
- Ensure visibility of the hermit crabs' demise, as kills may not register without sufficient observation.
- If playing as the Engineer, manage turret usage strategically to avoid unintended hermit crab casualties.
- Playing on Drizzle difficulty is recommended, and swiftly progressing to Stage 5 is advised to maximize time before the game intensifies.
In summary, the provided information serves as a tactical guide for players aiming to reach and succeed in Stage 5 of the game, specifically employing the Engineer character and dealing with hermit crabs using a nuanced approach. The tips offered demonstrate a deep understanding of the game's mechanics and potential challenges, showcasing the expertise of the source.
