(of an object or substance) Yielding easily to pressure; very soft; especially, soft and wet, as mud.
2009, Jamie Carie, Wind Dancer, B&H Publishing Group, ISBN 978-0-8054-4534-3, page 144:Finished with head and hair, the women pulled her up the bank to wash her body, the soft squishy mud registering for the first time on the outer consciousness of Isabelle’s mind.
(figuratively, of a person) Used as a term of endearment.