We experimentally surpass the 3 dB limit to steady-state parametric squeezing of a mechanical oscillator. The localization of an atomic force microscope cantilever, achieved by optimal estimation, is enhanced by up to 6.2 dB in one position quadrature when a detuned parametric drive is used. This squeezing is, in principle, limited only by the oscillator factor. Used on low temperature, high frequency oscillators, this technique provides a pathway to achieve robust quantum squeezing below the zero-point motion. Broadly, our results demonstrate that control systems engineering can overcome well established limits in applications of nonlinear processes. Conversely, by localizing the mechanical position to better than the measurement precision of our apparatus, they demonstrate the usefulness of mechanical nonlinearities in control applications.