In order to save the squid on level 301, you need to make matches with them before they reach the top of the game field. To beat the level, try to make matches with the squid as often as possible, otherwise you may just run out of moves.
Bombs and Lightning power-ups are of great help on this level, however, you need to keep your eye on the spots where new squid spawn – if a power-up gets there, the next squid won’t appear on the game field.
You should also check out this video that shows how we got through level 301.