Similar to 'nice' as in: I've got an A for my test.' 'Nice, man.' it can also be used to cover accidental physical contact as a random action with no real meaning behind it. This is supposed to make the situation less awkward
2: softly hitting someone, then pull through, uttering 'squibb'
A: Man, it's really hot outside. Wanna go grab some ice cream?
B: Squibb.
2: *you get pushed from the side into a friend walking next to you*
" Squibb "