Only check for kraken if you're actually fishing.

src/main/java/com/gmail/nossr50/listeners/PlayerListener.java

@@ -180,10 +180,10 @@ public class PlayerListener implements Listener {
             case FISHING:
                 if (!Permissions.krakenBypass(player)) {
                     event.setCancelled(fishingManager.exploitPrevention());
-                }
 
-                if (event.isCancelled()) {
-                    return;
+                    if (event.isCancelled()) {
+                        return;
+                    }
                 }
 
                 if (fishingManager.canMasterAngler()) {

src/main/java/com/gmail/nossr50/skills/fishing/FishingManager.java

@@ -143,12 +143,12 @@ public class FishingManager extends SkillManager {
     }
 
     public boolean exploitPrevention() {
-        if (!AdvancedConfig.getInstance().getKrakenEnabled()) {
+        if (!AdvancedConfig.getInstance().getKrakenEnabled() || !getPlayer().getTargetBlock(null, 100).isLiquid()) {
             return false;
         }
 
         long currentTime = System.currentTimeMillis();
-        boolean hasFished = currentTime < fishingTimestamp + FISHING_COOLDOWN_SECONDS;
+        boolean hasFished = (currentTime < fishingTimestamp + FISHING_COOLDOWN_SECONDS);
 
         fishingTries = hasFished ? fishingTries + 1 : Math.max(fishingTries - 1, 0);
         fishingTimestamp = currentTime;