Heat the olive oil in a large heavy based frying pan or Dutch oven over medium heat until hot. Add the onion and cook for 5 minutes, stirring often, or until lightly golden in colour. Stir in the garlic and chilli and cook, stirring for a further 2 minutes.
Add the squid pieces to the pan and cook for 3-5 minutes or until the squid has tightened up and turned opaque.
Add the red wine and allow it to bubble up for 2 mins then add the tomatoes and 1/2 cup of water. Using the back of your spoon, gently squish the tomatoes to burst them, whilst stirring. Season well with salt and pepper.
Bring to a boil then reduce the heat to low and simmer for 30 minutes or until squid is very tender, adding a little extra water if necessary if the sauce becomes too thick.
Meanwhile, cook the linguine in a large saucepan of boiling salted water according to packet directions or till al dente. Drain the pasta over a colander, reserving 1/2 cup of the pasta water.
Add the linguine, parsley, lemon zest and the some of the reserved pasta water (if required to loosen it up) to the squid sauce and toss to combine. Divide amongst serving bowls. Garnish with extra parsley, lemon zest and cracked black pepper. Serve with a rocket and parmesan salad and fresh crunchy bread if desired.