This is the first time this has happened to me but, on my squier guitar one of the humbuckers have died. I have tried everything i can think of, changed the height of the pickup, looking at the wiring, etc. Does any one what this is.
Could be the pickup but could also be the toggle switch. Fender Squires are not top of the line so a pickup failure is possible (don't know how long you have owned it maybe it's still covered by warranty). I own a Squire (Mexican made about 20 years old) and one of the first things I did was swap out the pickups to EMG David Gilmore. Everything else it still stock and it is one of my fav guitars, especially for blues.
Its the bridge humbucker only, the other is fine. I only recently had the toggle switch swapped for a new one.
When i play it on gain you can hear the pickup, but its clean sounding and the bridge has still got a crunchy bite sound.
It's definitely a wiring issue, pickups don't "die".
Actually called Mark!

Quote by TNfootballfan62
People with a duck for their avatar always give good advice.

...it's a seagull

Quote by Dave_Mc
i wanna see a clip of a recto buying some groceries.

Hmm wierd, the wiring in the back seems ok (btw its hasnt got a scratchplate the wires are in the back like les pauls), i may have to look at the pickup itself.