I see what you mean, and I’ve mentioned that I love bad endings of that sort before, but I feel the the dissatisfaction of being forced into one regardless of anything you do would feel worse than the annoyance that may arise from a fetishy aspect of the game you like being part of a legitimate fail state. If the punishment for getting squashed wasn’t very serious then you’d be able to do it more if you wanted, but at the same time, what’s the point of enemies doing something that isn’t threatening? I went into more detail with my thoughts on something like this in this thread:“Bad Ends” are really good.
If all else fails, squashing could always be implemented in something along the lines of an optional scenes, maybe. You talk to an NPC, some stuff happens, queue harmless squashing scene.