when a mesa biome is near the ocean, red sand generates on the ocean floor..
Seed is 7503736762256139636. bonus chest, and all default settings.
X:-62 Z:79
MC-152020
red sand generating in ocean biomes
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That's not an ocean biome, but a badlands biome. Obviously red sand (and terracotta, this is actually terracotta) will generate on the ground of badlands biomes.