A man is squatting on the ground.
A man is in his bed asleep.
A person can either be in a squatting position, or asleep in his bed, but not both.
A man is either squatting on the ground or in his bed asleep; he cannot do both simultaneously.
If he is on the ground, he is outside. If he is in his bed, that is usually inside. He cannot be inside and outside at the same time.