diff --git a/Directory/Simplify/File.pm b/lib/Directory/Simplify/File.pm
similarity index 100%
rename from Directory/Simplify/File.pm
rename to lib/Directory/Simplify/File.pm
diff --git a/Directory/Simplify/FileHash.pm b/lib/Directory/Simplify/FileHash.pm
similarity index 96%
rename from Directory/Simplify/FileHash.pm
rename to lib/Directory/Simplify/FileHash.pm
index 1e8db4f..54a0eb8 100644
--- a/Directory/Simplify/FileHash.pm
+++ b/lib/Directory/Simplify/FileHash.pm
@@ -8,9 +8,9 @@ Object for abstracting management of a hashed filesystem
 
 =cut
 
-# :squash-ignore-start:
+# :squash-remove-start:
 require Directory::Simplify::File;
-# :squash-ignore-end:
+# :squash-remove-end:
 
 sub new {
     my $class = shift;
diff --git a/Directory/Simplify/Instruction/CopyTimestamp.pm b/lib/Directory/Simplify/Instruction/CopyTimestamp.pm
similarity index 93%
rename from Directory/Simplify/Instruction/CopyTimestamp.pm
rename to lib/Directory/Simplify/Instruction/CopyTimestamp.pm
index 491a4f4..fba95c9 100644
--- a/Directory/Simplify/Instruction/CopyTimestamp.pm
+++ b/lib/Directory/Simplify/Instruction/CopyTimestamp.pm
@@ -4,9 +4,9 @@ use strict;
 use warnings;
 use overload '""' => 'as_string';
 
-# :squash-ignore-start:
+# :squash-remove-start:
 require Directory::Simplify::Utils;
-# :squash-ignore-end:
+# :squash-remove-end:
 
 sub new {
     my $class = shift;
diff --git a/Directory/Simplify/Instruction/Generator.pm b/lib/Directory/Simplify/Instruction/Generator.pm
similarity index 99%
rename from Directory/Simplify/Instruction/Generator.pm
rename to lib/Directory/Simplify/Instruction/Generator.pm
index 3567d05..d2bab1b 100644
--- a/Directory/Simplify/Instruction/Generator.pm
+++ b/lib/Directory/Simplify/Instruction/Generator.pm
@@ -6,10 +6,10 @@ use overload '""' => 'as_string';
 use File::Basename qw/ dirname /;
 use File::Compare qw/ compare /;
 
-# :squash-ignore-start:
+# :squash-remove-start:
 require Directory::Simplify::Instruction::CopyTimestamp;
 require Directory::Simplify::Instruction::Hardlink;
-# :squash-ignore-end:
+# :squash-remove-end:
 
 sub new {
     my $class = shift;
diff --git a/Directory/Simplify/Instruction/Hardlink.pm b/lib/Directory/Simplify/Instruction/Hardlink.pm
similarity index 95%
rename from Directory/Simplify/Instruction/Hardlink.pm
rename to lib/Directory/Simplify/Instruction/Hardlink.pm
index 9a7e7c0..24d274e 100644
--- a/Directory/Simplify/Instruction/Hardlink.pm
+++ b/lib/Directory/Simplify/Instruction/Hardlink.pm
@@ -4,9 +4,9 @@ use strict;
 use warnings;
 use overload '""' => 'as_string';
 
-# :squash-ignore-start:
+# :squash-remove-start:
 require Directory::Simplify::Utils;
-# :squash-ignore-end:
+# :squash-remove-end:
 
 sub new {
     my $class = shift;
diff --git a/Directory/Simplify/Utils.pm b/lib/Directory/Simplify/Utils.pm
similarity index 100%
rename from Directory/Simplify/Utils.pm
rename to lib/Directory/Simplify/Utils.pm
diff --git a/make-allinone.sh b/make-allinone.sh
index 5f201d9..6bbaa4d 100755
--- a/make-allinone.sh
+++ b/make-allinone.sh
@@ -8,6 +8,6 @@ echo "Outputting to $OUT" >&2
 shopt -s globstar
 "$WORKDIR/util/squash" \
     "$WORKDIR/simplify_static_dir-main.pl" \
-    "$WORKDIR"/**/*.pm \
+    "$WORKDIR"/lib/**/*.pm \
     > "$OUT"
 chmod +x -- "$OUT"
diff --git a/simplify_static_dir-main.pl b/simplify_static_dir-main.pl
index e69e39a..78ecfe4 100755
--- a/simplify_static_dir-main.pl
+++ b/simplify_static_dir-main.pl
@@ -104,16 +104,16 @@ use File::Find qw/ find /;
 use Getopt::Std qw/ getopts /;
 use Pod::Usage qw/ pod2usage /;
 
-# :squash-ignore-start:
+# :squash-remove-start:
 # (this prepends to the load path)
 use FindBin qw//;
-use lib $FindBin::RealBin;
+use lib "$FindBin::RealBin/lib";
 
 require Directory::Simplify::File;
 require Directory::Simplify::FileHash;
 require Directory::Simplify::Instruction::Generator;
 require Directory::Simplify::Utils;
-# :squash-ignore-end:
+# :squash-remove-end:
 
 sub HELP_MESSAGE {
     my $fh = shift;
diff --git a/util/squash b/util/squash
index 3403c19..a015533 100755
--- a/util/squash
+++ b/util/squash
@@ -18,17 +18,48 @@ for my $arg (@ARGV) {
     warn "Reading $filename\n";
     open my $fh, '<', $filename or die "Can't open $filename: $!";
     my $in_pod = 0;
-    my $in_ignore_section = 0;
+    my $in_section = '';
+    my $ignore_lines = 0;
+    my $empty_lines = 0;
     while (<$fh>) {
         if (/#.*:squash-ignore-start:$/) {
-            $in_ignore_section = 1;
-            next;
+            $in_section = 'ignore';
+            $ignore_lines = 1;
         } elsif (/#.*:squash-ignore-end:$/) {
-            $in_ignore_section = 0;
+            $in_section = '';
+            $ignore_lines = 1;
+        }
+        if ($ignore_lines > 0) {
+            $ignore_lines--;
             next;
         }
-        next if $in_ignore_section;
-        next if /#.*:squash-ignore-line:$/;
+
+        if ($in_section eq 'ignore') {
+            $empty_lines = 0 unless /^$/;
+            $code .= $_;
+            next;
+        }
+
+        # Remove repeated newlines between paragraphs
+        # (Provided of course we're not in an 'ignore' section)
+        if (/^$/) {
+            ++$empty_lines;
+            if ($empty_lines > 1) {
+                next;
+            }
+        } else {
+            $empty_lines = 0;
+        }
+
+        if (/#.*:squash-remove-start:$/) {
+            $in_section = 'remove';
+            next;
+        } elsif (/#.*:squash-remove-end:$/) {
+            $in_section = '';
+            next;
+        }
+        next if $in_section eq 'remove';
+        next if /#.*:squash-remove-line:$/;
 
         next if /^\s*1;$/;
 
@@ -49,12 +80,13 @@ for my $arg (@ARGV) {
         s{\s*##.+critic.*}{};
         $code .= $_;
     }
+
+    # Warn if there were unterminated :squash-*: sections
+    warn "$filename: Unterminated :squash-$in_section-start: section" if $in_section;
+
     close $fh;
 }
 
-# Remove repeated newlines between paragraphs
-$code =~ s/\n\n+/\n\n/gs;
-
 print $code;
 
 exit 0;