the obvious thing is to look at server logs and run a local test as indicated in squid installation instructions
some not-so-obvious problems that have been reported are
farm was reconfigured, with new subnet, and the list of allowed subnets in squid was not updated
squid cache was corrupted. This should be reported in squid's cache.log file, a 'squid -z' command will be needed, see installation instructions. Note that the version of the installation tarball 2.0rc3 and later (see https://twiki.cern.ch/twiki/bin/view/CMS/SquidForCMS ) should detect the corruption and automatically recover from it