When you squat down to give someone a hug. You hug them, whilst squatting.
I wanted to hug her, but she was sitting on the floor, so I gave her a quick squg and then I was on my way.
A cross between a squish and a hug. Commonly known as a bear hug.
Friend: I'm not fat. ]: I'm just squishy.
Buddy: You're squishy like a plushie. <3 *squg*