On the modern hardware (i.e. SSD's) files are always «contiguous», thanks to the transparent block remapping in the SSD firmware.
Compacting/squeezing was only necessary because magnetic disks were contiguous in their nature and had to be erased and rewritten, which was a time consuming (sometimes very time consuming) and potentially dangerous operation leading to a complete data loss if power flickered.
To a certain extent, the compacting is still there and is done in the SSD's (now called «garbage collection»), although it is also transparent to the user and to the operating system.