I attempted to compactor, but I'm having issues getting it to load on my server, something about the plugin yml being invalid or missing when it's clearly there. Anyway if someone could test it, see if it works it's
in my fork.
You should be able to create it like a normal factory with 64 diamond blocks. From there, the way it works is by taking the first full stack of items in the chest as well as one "crate" which is a chest named Crate with the lore "A crate for compacting items". It will consume them and output a single item of the type of the full stack, but with the lore "Compacted Item". In decompact mode it will take the first item with the lore "Compacted Item" and output a full stack of that item.