For a positive integer $k$, the $k$-cut complex of a graph $G$ is the simplicial complex whose facets are the $(|V(G)|-k)$-subsets $σ$ of the vertex set $V(G)$ of $G$ such that the induced subgraph of $G$ on $V(G) \setminus σ$ is disconnected. These complexes first appeared in the master thesis of Denker and were further studied by Bayer et al.\ in [Topology of cut complexes of graphs, SIAM Journal on Discrete Mathematics, 2024]. In the same article, Bayer et al.\ conjectured that for $k \geq 3$, the $k$-cut complexes of squared cycle graphs are shellable. Moreover, they also conjectured about the Betti numbers of these complexes when $k=3$. In this article, we prove these conjectures for $k=3$.