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Kinda hard to ID as this guy is upside down, can't see much detail about its back half in the photo, and you didn't indicate size. Immediate reaction based on the coloration, shape, & sandy location is "purplemouth moray."
Judging from the photo I'd say Purplemouth as well.
I've seen eels "swell up" before,but nothing like the photo.In my experience,it's usually more of a lump around "throat/gill" area.These "swellings" are usually from internal damage caused by a puncture from fins,etc, from prey being swallowed.Some survive and some don't.
With the degree of swelling shown in the upper half of the body compared to the gauntness of the lower half,I would guess that this eel has a blockage of some sort (fins,bone,etc).I don't expect it lasted very long after the pic was taken.
Thanks everyone. It definitely was not dead because it swam (slowly) out from under a rock, but just hung around on the sand patch. I know it's not smart to humanize animals, but it still makes me sad when one is injured or sick.