Shred yellow squash and squeeze dry using a fine-mesh colander.

Finely chop yellow onion and set aside.

Whisk together egg, fine sea salt, black pepper, and garlic powder in a medium bowl.

Add pressed yellow squash and chopped onion into the egg mixture, stir until coated.

Sprinkle in coconut flour and gently fold until the mixture holds together.

Heat a skillet over medium heat and melt salted butter until golden brown.

Portion batter into the skillet, spacing fritters 2 inches apart. Cook for 4-5 minutes until golden.

Flip each fritter and cook for an additional 4-5 minutes until cooked through.

Transfer cooked fritters to a paper towel-lined plate and repeat with remaining batter.

Serve warm with dipping sauces, enjoying the crunchy texture.