I've put this up in the other thread but I felt it won't see the light of the day.
Anyway, for those who are familiar with the metric system, I think you can relate your schemata with the unreleased item squish.
The metric system is transitional. It is consisted of base units; derived units were built up from the base units using logical rather than empirical relationships while multiples and sub-multiples of both base and derived units were decimal-based and identified by a standard set of prefixes.
For example 1,000,000 cm = 1000m = 1km.
Imagine 1000m is the amount of damage you inflict or the amount of health a raid boss has, the item squish simply displays the decimal points by making it 1KM. The value is still the same but the DISPLAY would be different.
TLDR; Same value, different numbers displayed.
In other word 1m x100 = 1Km.
Or if your normal damage is 100m your new squished damage would be 0.1Km.