The story
Earliest uses (late 16th c.) "to spend recklessly or prodigiously", also "to scatter over a wide area". Of unknown origin. Perhaps a blend of scatter + wander. Compare Danish skvætte (rare)/skvatte (“to splash”) (nominalised: skvæt), Icelandic skvetta (“to squirt”), Swedish skvätta (“to splash”), Norwegian Bokmål skvette.
Etymology from Wiktionary, CC BY-SA 4.0.