Why is this code so slow

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Shambler:
That's a clever idea.

But Blitz runs slowly with too many entities, even when they are copies.

So you would want to find the right balance between the number of vertices you're animating, and the number of entity copies you make. It seems to me that unless your ocean waves are very low polygon, or wave very little that a 4x4 grid might not be the best mesh size to work with.