Yes, we handle this both in the CLI and server using git rebase --onto

  git rebase --onto <new_commit_sha_generated_by_squash> <original_commit_sha_from_tip_of_merged_branch> <branch_name>

  PR1: main <- A, B              (branch1)
  PR2: main <- A, B, C, D        (branch2)
  PR3: main <- A, B, C, D, E, F  (branch3)

  S1 (squash of A+B), S2 (squash of C+D)

  git rebase --onto S2 D branch3

  S1, S2, E, F