I didnt know about the qt mobile hotspot, nice app, just installed it, will be using it soon. If rootfs is the cause of crashing squid then its ok (but no other app crashes), i'll be flashing the device and installing stuff again, its been a long time I have not flashed this.
But I'm thinking that using the internet from the usb will be much more economical battery-wise, these hotspots in cell phones drain battery fast.