No seriously. Any scientists/biologist here to help? Even evolutionary wise it seems to be a grey hole; it has no living close relatives and very few fossilised ones.
It is an honest to God enigma. A cool looking one, but still.
-blam!- it, it might as well have been a chimera.
Just stick a beaver, a duck, an otter and a snake in a blender and you got yourself a waddling/paddling mess.
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Just because we haven't found the fossils doesn't mean they aren't out there. The fossil record is patchy at best but we continue to add to it.