Squishing removes the faces, texture coordinates, normals, and any other extra data from an object file, leaving you with only the 'points' or 'vertices' of the geometry. Supposedly this method prevents people from reverse engineering the .obj file back into useable geometry (unless you have the base .obj... blmilwoman.obj in this case). As a side note, my own personal feeling is that there are currently tools out there capable of this reverse engineering...but I haven't tested this theory and DAZ has not changed their policy on it at this time.