What is the Cheapest Hostel in the World?

I’ve stayed in and enjoyed both. Outside of the legal definition you gave – and my earlier fast statement where I should of said “squat-like” instead of they were a squat. My apologies if it bothered anyone.
The point I was trying to make was that hostel bed wholesalers segregate their accommodation classes’ incorrectly and are not a dependable guide line. Their motivation is not to define correctly. It is to give as much choice to make money. If this is the way they want to do it fine, but they should take away the option box as there is no option to select (in this case) just hostels.
But to answer your question in my own way,
I myself get visions of Andrew Warhola and Haight-Ashbury when I think of squats. I liked the time I “had” to spend in them, but it is living life a bit “closer to the bone” sorta speak.
Squats are not for the mainstream, with squats there is often no motivation for upkeep, so basic’s like water and electric have to be ingeniously supplied if at all.
While in the act of “squatting” a necessary revolt if you will, the squatters tend to band together and unify and eventually if it can overcome ego it finds a direction – usually open minded artist type squats have the most successes for a long-term community. This is I believe, the “atmosphere” They are trying to convey. Like I said before it is for some. Good luck to them. But they are not a hostel.

When booking a hostel there are certain things you take for granted. It might not be hot, but water is a good start. Most westerners expect bedding of some sort and a toilet area that you can approach without fear. An area to keep your belongings safe and the possibility of not sharing the building with others who are without the 68baht to pay to stay there.
At a squat none of these things are expected. (For the record I've seen some great looking squats)

Since pictures are better than words...
This IS the squat-like overstay.
http://matadornights.com/0-62-a-night-when-your-dorm-ends-up-being-a-squat/comment-page-1/#comment-4214

This is a Hostel.."philosophically motivated also" but there are differences.
www.soi1guesthouse.com

Which type would you send your young backpacker to in Bangkok?

And thinking outside the "bed wholesaler" box about cheaper accommodation for traveler's-"Has anyone seen anything cheaper?"- Ever looked at the couchsurfers.org site?
Not all people want private rooms

no worries,
Ha , this would count for another post ?
answer and that 50 would come a bit faster... :)

Thanks for that.
:)

0.1 euro in Istanbul. You can book on HW.

Another in the same city is 1 euro, same as another hostel in Berlin.

In Siem Reap, Cambodia, I slept in a decent dorm for 1 U$