The Collaborative International Dictionary of English v.0.48:
Squat \Squat\, v. i. [imp. & p. p. Squatted; p. pr. & vb. n.
Squatting.] [OE. squatten to crush, OF. esquater, esquatir
(cf. It. quatto squat, cowering), perhaps fr. L. ex +
coactus, p. p. of cogere to drive or urge together. See
Cogent, Squash, v. t.]
1. To sit down upon the hams or heels; as, the savages
squatted near the fire.
2. To sit close to the ground; to cower; to stoop, or lie
close, to escape observation, as a partridge or rabbit.
3. To settle on another's land without title; also, to settle
on common or public lands.