The Cosmetic Ingredient Review is an independent expert panel that assesses the safety of cosmetic ingredients. It first reviewed squalane and squalene in 1982 and concluded both were safe as used. It revisited that conclusion in 2001, 2019 and again in 2023, each time taking in new studies and updated data on how much of the ingredient is actually going into products. Each time it reached the same conclusion. Underlying this are animal irritation studies showing no skin or eye irritation even undiluted, and human patch testing across studies ranging from 20 to 600 people with no contact dermatitis or sensitisation found. This is the clearest statement available that squalane is safe. It says nothing about whether squalane does anything in particular, which is a separate and much less well answered question.
Fiume M, Bergfeld WF, Belsito DV, et al. Squalane and Squalene. Int J Toxicol. 2023;42(Suppl):107S-109S.