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Background
When you talk to Morell to complete the task
Find Morell, the Cryptozoologist (#1), he'll mention that he can't return to Lena yet because he needs to check all of his phasmid traps. If you offer to do this for him, then you'll trigger this task.
Note: When talking to Morell about the traps, he'll offer to spray you with phasmid pheromones. You should agree to this. The pheromones will help you with an event later in the game.
Walkthrough
There are four traps. You'll find the first one with Morell and Gary (#1), but you won't be able to interact with it until you've checked some other trap first (such as the one nearby to the south). You'll find the other three traps in the far corners of
Martinaise West (#2). You won't detect any phasmids in any of the traps, but when you get to the fourth one, you'll discover that its locusts are missing -- which might mean that the phasmid ate them, or perhaps that there was some sort of sabotage.
To complete the quest, you'll need to head over to the
Whirling-in-Rags (#3). You'll find Morell (and Gary) at the bar next to Lena. Before you can talk to Morell, you'll need to talk to Lena, who will thank you for your help and reward you with an
Eight-Eyed Teratorn Tie. Then when you talk to Morell, you'll complete the task and earn 10 xp. Afterwards, if you pass an Interfacing check, then you'll float the idea that maybe Cuno (#4) stole the locusts. This will trigger the task
The Missing Insects Case.
Note: Checking on the first trap will cause Morell and Gary to head over to the
Whirling-in-Rags (#3). Talking to Morell to complete the task will cause Gary to go home to his apartment (#5), which will make him and his apartment unavailable for the rest of the game. So before completing this task, make sure you've completed
Get Topping Pie from Gary,
Open Apartment Door for Evrart, and
Who Put the Clothes in the Trash?
1 - Morell and Gary
2 - Traps
3 - Whirling-in-Rags
4 - Cuno
5 - Gary's Apartment