Don't think the computer ever squibs it at all. I'm always hearing Nessler saying "They should probably just squib it here to prevent a big return" but the computer doesn't.
On topic, one of my most memorable moments playing this game was when I rallied from a 2 score deficit in under 2 minutes in an online ranked match. It involved me kick an onside kick, which my opponent recovered. However, one of my guys laid the wood on the ballcarrier causing him to fumble.. which I recovered and ran all the way back for the tying score. Ended up winning the game on a last second field goal!