The gruesome discovery of 32 bodies scattered in houses in the port city of Veracruz this week is the latest sign that Mexico's drug-fueled violence is entering a new phase in which murky paramilitary-style squads are carrying out mass exterminations.

A spokesman for Mexico's marines, Jose Luis Vergara, said Friday that troops had arrested eight suspected members of a squad known as "Zeta Killers" on Thursday and that their confessions led troops to three houses where they discovered the bodies.

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