Both.

John Lilly is a nut and stuck Margaret and a dolphin together in a tiny enclosed space where neither of them could get much space or stimulation.

He would constantly just bullshit things like “oh, I’ll make the middle area of the house two feet of water deep because that’s the optimum depth for human dolphin interaction!”

Dolphins are unbelievably horny and being locked up probably didn’t help with that. The dolphin would nip at Margaret and shit until she finally went like “jfc I’ll just jerk this fucker off”