In a squatting position; crouched down close to the ground.
From a- + squat, continuing the archaic 'a-' prefix pattern for describing bodily positions and states. 'Squat' itself likely derives from Old French 'esquatir' meaning to press down or crouch.
This word barely survives in modern English except in dialectal use, but it shows how Old English could efficiently describe actions and positions—you could say 'he sat asquat' as a complete image of a particular pose, something we'd now require multiple words to convey.
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