Ponies dream of becoming unicorns. Daisies maybe dream of becoming roses. Moths don't dream (that we know of) because their brains aren't really wired that way, but if they did, moths would dream of becoming DRAGONS. Specifically, this dragon.
Imagine an infinite number of alternate dimensions, sliced thin like salami and all layered together in a delicious sandwich of universes. In these parallel strata of time and space, the Squishables are very, very different. Squishable Alter Egos are all the Squishables that might have been (and almost certainly still are...somewhere).