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Yes, squash can "sweat"--as
Yes, squash can "sweat"--as can other vegetables! It's nothing to be worried about. This usually happens when it's exposed to alternating cold and warm temperatures which simply causes moisture to accumulate no the surface. If you salt your squash, you'll also see it "sweat" as the salt draws moisture from the inside. If you are eating your squash soon, don't sweat it. If you want to store it to keep longer, however, make sure your storage area is cool and prevents temperature variation to avoid decay; stored veggies also need good air circulation/ventilation.