Thalassamania:Yes, the question is does it equalize pressure with more gas or by sucking your flesh into the lower pressure area, that's what squeeze is.
I'm choosing this as the explanation that makes the most sense. I've not been able to buy into the pressure-against-skin "squeeze" concept because 50psi water or 50psi fabric or 50psi air is all the same. But suction, pulling the skin outward, is something that can only happen with a compressible region surrounded by incompressible regions, e.g. a drysuit.
Since we are mostly water, it would seem the water pressure is transmitted through our body, meaning not only is the water pushing inward against the suit but our body fluids are pushing outward against our skin.