According to your surgeon he left it in the torn state, so that answers your question. I would not be squatting at this time, at least until pain free motion is demonstrated and then I would begin with body weight only squats. Perhaps you are doing to much to soon. For my mind the 4 week time frame was rather optimistic. p.s. The Physio should stop testing the knee, e.g. via the Wikipedia reference-linkApley grind test when things are trying to heal. Many of the tests provoke the tissues so why continue to do them once you know what has gone on in there.