A “compacted” embryo is what embryologists call a blastocyst that is squished up into a tight wad of cells. It can also be referred to as a “collapsed” or “contracted” blastocyst.

This happens because blastocysts contain a cavity called a “blastocoel” that’s filled with water, and when they lose this water the blastocyst deflates like a balloon would — causing it to become compacted/collapsed.

This can happen naturally, but blastocysts can also be artificially collapsed before freezing to remove water from the blastocoel. How well an embryo re-expands is linked to success rates.
More details in my post What is embryo compaction?
Synonyms:
re-expanded, re-expansion, re-expands, compacted, embryo collapses, embryo collapse, expansion and contraction