In middle class white south eastern Virginia "squat" = physical act as in to squat down or state of not having as Azizi said. I ain't got diddley squat.

Never heard "squat the rabbit" and my maternal grandparents were from Clarksburg West (by god) Virginia.

No one's mentioned squatter's rights or squat as a term for inhabiting an abandoned or unused building or plot of land without owning or holding a formal lease on it; a person squatting is known as a squatter, and the house or building occupied by squatters is known as a squat.