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Compresion works in blocks of 16 clusters
Data is compressed using a modified LZ77 algorithm, named LZNT1.
Each block is compressed independently
If compressed block does not become less than the original 16 clusters, it is left uncompressed.
Compressing a file adds serious complexity to the way the file is stored.
The MFT is the only place that contains information about what parts are compressed and by how much.
If MFT is corrupted there is little hope retrieving the data!
Reference:
http://en.wikipedia.org/wiki/LZ77
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