Squirtletwo is a clone of Squirtle and is the result of an experiment conducted by Dr. Fuji and a team of Team Rocket scientists.
Despite never gaining consciousness, Squirtletwo managed to communicate with Bulbasaurtwo, Charmandertwo, Mewtwo and Ambertwo via telepathy.
Squirtletwo enjoyed spending time in Ambertwo's "Remember Place" before suddenly dissapearing in front of Mewtwo and Ambertwo. This was because Squirtletwo had perished in the experiment chamber in the real world.
(Squirtletwo had markings over its body, which seems to mean it is a superior clone like the Blastoise that Mewtwo cloned on New Island. Because Squirtletwo can communicate using telepathy, this may mean that it has some kind of psychic ability.)