I'll do some tests on the files using standard Zip or LZ like alfaunits suggested.
I'm pretty sure the result is that it's being overdone already, I might even remove some of the steps from the loop.
As long as you are testing it, I suggest concatenating a bunch of the smaller files into one larger file before compressing it. Just to prove that the data is not repeating on the file level (not that I doubt you
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