There are many things that could cause this but most revolve around the same idea.
Only use the Squishy Octopus by itself when testing. Do not place in any sort of loop, or chain, for basic troubleshooting.
If plugged in by itself, and you still get a static noise, then experiment with different guitars if you can because it could be a result of pickups being too close to the strings or just very high output pickups. The optical compressor is sensitive to what ever is in front of it which is why it should be first in your chain, only seeing the guitar signal. Doing a few quick tests can help you sort that out.
You can roll the volume of your guitar down to half and see if it is still an issue to help you figure it all out.