I doubt that this is the case. If, for example, people were buying steelies for bait, the current rate they would pay is 1$ per pound. This is much more than a 25# box of frozen squid.
Longliners wouldn't gain from it, because they pay more in the 1st place and then they have to put it up. Further, they would have wastage from the guts and head. Squid is the bait of choice because it stays on the c- hooks and is tougher and works!.
Sporty's, in the ocean fishery, would be crazy if they use anything other than jigs in my opinion, because of the depth of the fish.
I don't disagree that someone out their may use it, but it's not profitable or worthwhile.

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"Chicken one day ~~ feathers the next!~

FULLTIME FISHING IS MY JOB! & RETIREMENT ROCKS!