We propose a conditional-squeezing gate for superconducting circuits, which squeezes one or two modes of a resonator along a direction determined by the state of a dispersively coupled qubit. We show that the fidelity of this gate can be substantially improved by a refocusing protocol, in an architecture accessible with current technology whose key element is a SQUID-terminated resonator. The refocusing protocol relies on a symmetry of the Hamiltonian that is absent in the previously proposed controlled-squeezing gate, which squeezes the resonator only for one state of the control qubit and, ideally, acts trivially otherwise. We apply the refocused gate to encode an arbitrary qubit state into superpositions of single- and two-mode squeezed vacuum states, in which single-photon losses are detectable through parity measurements. Including nonlinearities and dissipation, the conditional gate consistently outperforms the controlled-squeezing gate, and, for optimistic but achievable experimental parameters, the encoding reaches fidelities above 0.99 for all qubit states.