Main toolbar > Select and Squash (on Select and Scale flyout)
Right-click an object. > Scale (selects current toolbar Scale mode)
Squash scales two axes in opposite directions, maintaining the object's original volume
The Select and Non-Uniform Scale button, available from the Select and Scale flyout, lets you scale objects according to the active axis constraint. Squashing an object always involves scaling down on one axis while simultaneously scaling up uniformly on the other two (or vice-versa).
You can restrict object scaling about the X, Y, or Z axis, or to any two axes, by first clicking the appropriate button further to the right on the toolbar.
When the Select and Squash tool is active, clicking an object selects it and dragging the mouse scales it.
Important: Avoid applying non-uniform scale at the object level. Non-uniform scaling is applied as a transform and changes the axes of the object, so it affects other object properties. It also alters the properties passed hierarchically from parent to child. When you perform other operations on the object, such as rotation, inverse kinematic calculations, and other positioning operations, you may not get the results you expect. To recover from these problems, use the Hierarchy panel's Reset Scale button or the Utilities panel's Reset Xform utility. Either of these options will reset the axes to use the non-uniform scale as the fundamental scale for the object. For more information, see Select and Non-Uniform Scale/Squash Alert.