A: Well it can be done. But it may be a little trickier. And it may not exactly be considered a Visual Squash. Although the following may already be familiar to you, I will recap for other readers. The Visual Squash is useful when you have two behaviors that are in conflict. For example, a smoker who likes smoking but wants to stop for whatever reason. You use the Visual Squash to A) separate intention from behavior (for each of the conflicting behaviors), then B) basically collapse two anchors. Now in most cases if you go for the highest positive intention, they will collapse on their own; otherwise you may need to do a little more work to get them there.
Now when you go about doing this with a group, you could have everyone with their palms up and chunking up to the highest intention on their own as you kind of guided them along. But more powerful would be, and what I have done on occasion is elicit from the group a problem which comprises of conflicting behaviors (everyone will have their own problem) and then I conversationally explain the Visual Squash, using my own hands and using generalized nominalizations. If you cycle through enough of those, you'll eventually hit most of the top ones for most folks. (peace, oneness, God, freedom, joy, state of being, etc...) As you can guess, the key to doing this with a group is calibration. And when you are high enough, when they feel that both behaviors serve a similar purpose or intention, then squash it slowly. This works to the degree that they follow along with you on the inside. And since people often find it easy to identify with others, especially in group settings and when you are using vague nominalizations, most will follow along with ease.
And one final point. My preference and recommendation for groups would still be the traditional collapsing anchors. Elicit the key states that drive each of the behaviors, stack them, and collapse them. And even with anchoring, the more generalized the states you elicit, the more people you will reach. And once again, calibration is the key.
-Oz