The pictures you posted show clearly that a bunch of people,--[Researchers on the southern Greek island of Crete have unearthed the fossilized tusk, teeth and bones of a Deinotherium Gigantisimum, a fearsome elephant-like creature that might have given rise to ancient legends of one-eyed cyclops monsters]-- who have never seen an elephant and have no knowledge, whatsoever, about anatomy, find an eye in the nose.
Someone in the group, presumably the reporter, saw the skull and said to herself, "That almost looks like an eye socket!---Cyclops...what a story!"
This is a "perceptual" hoax.