Squats are the subjects of a number stereotypes, most notably that they are all obnoxious, ferocious little ankle-biters who'd just as soon stab you in the back1) as give you the time of day. These stereotypes are, it turns out, based in truth, as most squats do indeed supplement their meager incomes with theft. In fact, the only real way to get the time of day from a squat is to beat them up and take back your watch and cell phone which the little blighter pick-pocketed when you were looking around to see who was talking to you.
This population is made up of mid-level contestants, who are still new to the Island but have become infused with enough improbability that their bodies have begun to transmutate. Based in Squat Hole, squats are often seen scampering around the Island in packs.2) 3) Their notoriously bad tempers and anger management issues make them an unpopular lot, but the other populations tolerate them because squats are strong and difficult to injure - in other words, the other populations see that it would take too much effort to eradicate squats and therefore tolerate them.4)
For more information concerning the squats and their home, Squat Hole, the reader is directed to this catalogue of documents pertaining to the subject.
Physically, squats have several natural advantages and several limitations:
Squats are the population most similar to Humans, aside from their stature. Their culture seems derived from Humans' but emphasizes the worst aspects. The Watcher dislikes squats but tolerates them because their bad attitudes and frequent outbursts make for great reality TV. A squat on the FailBoat will struggle to achieve favor.