A cloud of smaller host creatures scatters the sonar.
The squid is followed by a cloud of small creatures that scavenge the scraps of the squid's food. In return they serve to scatter the sonar waves of a sperm whale.
In order to scatter the sonar properly, the space between the creatures should be on the same scale as the wavelength of the sonar. We can calculate that.
The wavelength of the sonar is $ S \ /\ F$ for $S$ the speed of sound in water (metres per second) and $F$ the frequency (hertz). Since we're in the deep ocean let's say the water temperature is $2 C$ and we're 2km down. Then there are $200$ atmospheres of pressure and Wolfram Alpha says $S = 1445$. This BBC article claims a Sperm whale clicks at about $10 \text{ kHz}$ so we get $F = 10,000$. Dividing gives the wavelength of $14.45\text{cm}$.
So I suggest a cloud of small creatures a few metres across with about $15\text{cm}$ distance between each member. Perhaps these creatures can anchor themselves to the squid like remoras and only detach when they hear the first click.
A hunting whale is still able to detect the presence of a squid but with less precision depending on how effective the scattering is. They know the squid is is over there but that might be 30km away and they have to guess exactly where to aim. By the time they get there the squid has moved somewhere else. After a while the whale evolves to ignore these blurred signals and specialises hunting non-jamming squids.