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From Terraria Wiki
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Red Squirrels are retextures of the default Squirrel. They serve no purpose but to add a bit of variety in the term of environmental aesthetics. Like normal squirrels, these can be caught using a Bug Net and turned into an item, which can be sold for 5 or caged for decoration. They also have a slight health regeneration of about 2 health per second.
- 1.3.1: Now used to craft Squirrel Statue.