squid can’t do it. some hacks are required, which break HTTP standards. we could look into it, but it’s a mess.
look what is written on the Squid docs site:
Some private modifications of squid have apparently achieved youtube.com caching. However, there is presently no simple solution available to the general public.
To cache youtube.com files, you will need to enable caching of dynamic content and some other measures, which technically break the HTTP standards.
Videocache is a Squid URL rewriter plugin written in Python for bandwidth optimization while browsing famous video sharing portals/websites like Youtube, Metacafe etc. It helps you save bandwidth when a particular video is requested more than once from the same network/machine.
Squid can not cache the videos served dynamically. Videocache fits into squid to help it cache the videos as well. The cached videos are stored on your server’s local hard disk and you can browse them as if you downloaded them. You can copy them to other machines as well.
I know, but read AGAIN what I posted. It breaks HTTP standards and is not official. Plus, we don’t use squid anyway, we would have to make our own HTTP breaking thing.