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Reteterebella queenslandia has only been formally identified at Heron Island in the Great Barrier Reef. At Heron Island R. queenslandia is commonly found throughout the shallow sandy inner reef zone and less commonly towards the reef crest. Because of this, it is unlikely that R. queenslandia is threatened. It is more than likely very common in all shallow sandy reef zones along the Great Barrier Reef, however it is possible that several unidentified closely related species of spaghetti worms species exist and are endemic to small sections of the Great Barrier Reef.
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