The mysterious fishing quest and insanity mods seem to be intertwined.
The rarely encountered fishing master Krillson is a play on developer and producer Chris Wilson's name. It could also mean son of Krill. Krill is a small crustacean often used as bait or food for whales or other fish.
During a Q&A with Chris Wilson, when asked what was in his hideout he stated "750 of the fishing guys".
There were only 750 copies of "H.P. Lovecraft's collected fiction" released. Contained within is the novella Shadow Over Innsmouth. The people of the port of Innsmouth turn into fishlike creatures. This horror novella ties into Lovecraft's larger universe of elder gods.
The Innsbury Edge is a unique Elder sword that is a reference to The Shadow Over Innsmouth. The sword has the hidden modifier of insanity +1 and causes strange things to appear to happen in game. One of these effects makes the message "___ is the first to enter the Fishyard" appear.
In a previous patch GGG bothered to make it where insanity effects stack. My guess is there are at least 4 items with this hidden modifier and stacking these has to do with the 4 fish that Krillson wants us to catch.
I'm just a casual player so I will probably never drop a unique fishing rod or encounter Krillson so I put this out there in case it helps solve the mystery if there is one.
I'm also curious if the Reefbane fishing rod glows anywhere in game, specifically the Coves map. This map is based off a zone previously found in act 1 but was removed.