The small blob is supposed to be there, there's no 360 shots of the studio ones but to me it looks like tied up hair in a Japanese style but you could paint it like anything.
I haven't painted my Wracks yet but I plan on doing them similar to the rest of my army, the armour will be coloured like everything else and the cloaks will be flayed skin.
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Sky Serpent - Drukhari 40k
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