Squashing is down up to the `FROM` statement in the Dockerfile. Any layers from the parent image are preserved. Where this does mess things up is with content-

Squashing is down up to the `FROM` statement in the Dockerfile. Any layers from the parent image are preserved. Where this does mess things up is with content-addressable storage where if you have two layers from completely separate images that produced the same content, the layers would be shared, but not if you squash (because there is no layer).