My bet is that your baby has turned posterior, with his back facing your back and his face towards your pubic bone. When babies are in that position, your belly seems "squishier" and looser because the bulk of the baby is inside your body. Can you feel his little feet and knees above your belly button? My babies are always posterior, and I have to turn them during labor. It's lots of fun. If you think that's what's going on you can go to http://www.spinningbabies.com They have tons of good info on getting baby into the best position for birth.
Mom, singer, Doula and HypnoBirthing practitioner!
My website: www.hypnobirthingutah.com
Age 8 Age 5 Age 2 years Love my boys!
Another little one due 9/12. Pink or Blue???