diff --git a/OtterGui b/OtterGui
index e3e3f42f..ee64ae2d 160000
--- a/OtterGui
+++ b/OtterGui
@@ -1 +1 @@
-Subproject commit e3e3f42f093b53ad02694810398df5736174d711
+Subproject commit ee64ae2d2710aea45365dafa3c91a721e59ae8fc
diff --git a/Penumbra/Api/PenumbraApi.cs b/Penumbra/Api/PenumbraApi.cs
index 9d578190..5ac53210 100644
--- a/Penumbra/Api/PenumbraApi.cs
+++ b/Penumbra/Api/PenumbraApi.cs
@@ -15,6 +15,7 @@ using System.Linq;
 using System.Runtime.CompilerServices;
 using System.Threading.Tasks;
 using FFXIVClientStructs.FFXIV.Client.Graphics.Scene;
+using OtterGui.Compression;
 using Penumbra.Api.Enums;
 using Penumbra.GameData.Actors;
 using Penumbra.Interop.ResourceLoading;
@@ -637,6 +638,8 @@ public class PenumbraApi : IDisposable, IPenumbraApi
             return PenumbraApiEc.FileMissing;
 
         _modManager.AddMod(dir);
+        if (_config.UseFileSystemCompression)
+            new FileCompactor(Penumbra.Log).StartMassCompact(dir.EnumerateFiles("*.*", SearchOption.AllDirectories), CompressionAlgorithm.Xpress8K);
         return PenumbraApiEc.Success;
     }