Term used to describe the Police coming, used primarily when partaking in illegal activity, such as a dice game, or smoking weed.
Yelling 'squalay' does not necessarily mean to run, it's totally situation dependant. If you're playing a dice game, and someone yells 'squalay!', just pick up the dice and cool out, if you just did the armed robbery thing, you better get ghost.
Three young gentlemen are jumping someone, and trying to take his chain...
One of the three men sees the cops before his friends.