Squibbles are pesky little creatures that infest your pixelated dreams. To squish them, you must first locate the source of their power: the Pixelator's Crystal Cave. Steer clear of the cave's treacherous Pixel Falls, and you shall be rewarded with the coveted Squibble-Squashing Crystal.
Stealth Squashing Tips:
Or, you know, you could just Squash the Squibbles with a Sledgehammer.