I didn’t quite get the method used to „compress“ the data from the article, maybe this rephrasing helps someone:
You basically split the file every time you encounter a specific character, and your compressor just combines all files it finds with the character you split by. If you split at every „X“ Char which might occur 1000 times in the file, the compressor only needs a small script which joins all files and puts an „X“ between them, which is less than 1000 bytes. The „trick“ is storing the location of the Xs you removed in the file sizes of the individual files.
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