It is narrated from Sayyidah Qaylah (may Allah be pleased with her) that I saw the Prophet (peace and blessings of Allah be upon him) sitting squatting with his arms wrapped around his legs. When I saw the Prophet (peace and blessings of Allah be upon him) sitting in this humble manner, I trembled out of fear.
Hadith Referenceالادب المفرد / كتاب / 1178
Hadith Gradingالألبانی:حسن
Hadith Takhrij«حسن : أخرجه أبوداؤد ، كتاب الأدب : 4847 و الترمذي فى الشمائل : 128»
Explanation & Benefits
Shaykh Maulana Usman Muneeb
Benefits and Issues: Wrapping a cloth around oneself in this manner is called "ihtiba’," while wrapping with the hands is called "qurfusa’." Its form is that one sits on the buttocks, raises both knees, and grasps the shins with both hands, or raises both knees, bends the head over them, and places the hands together in front of the shins so that a person remains protected from falling. This posture is extremely humble. The sitting of the Messenger of Allah (sallallahu alayhi wa sallam) in this manner is evidence of his humility and modesty.
Source: Fadlullah al-Ahad: Urdu Commentary on al-Adab al-Mufrad, Page: 1178