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Preheat the oven to 350°F. Oil a 10- to 12-cup Bundt pan and dust with flour, shaking out the excess. Scatter 1/2 cup of the coconut chips evenly over the bottom and slightly up the sides.
In a medium bowl, whisk together flour, baking soda, nutmeg and salt. Set aside.
In a large bowl, whisk together sugar and oil until smooth, about 30 seconds. Whisk in eggs and vanilla until combined. Add half of the buttermilk and then half of the flour mixture, stirring after each addition until just combined. Repeat with remaining buttermilk and flour mixture. Fold in butternut squash and remaining 1/2 cup coconut chips.
Spoon batter into the prepared pan, smoothing the top. Tap the pan gently on the countertop. Bake until cake is golden brown and the center springs back when touched, about 45 minutes. Cool on a wire rack for 15 minutes, then invert onto a cake plate and cool completely before serving.