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You're right... it's impossible.

This quote from the competition sums it up:

"Again, I will emphasize that Challenge 2 is at its heart provably impossible to beat. No program can compress all files of a given size, and the chances of any program being able to compress 1,000 different files of this length is so vanishingly small that it can safely be ruled out, even if every computer on earth was working on it from now until we are engulfed in flames during Sol’s red giant phase."



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