Compression and decompression of OSes

I'm not saying I'm doing this, but would it be technically possible to compress one OS while using the other when dual-booting?

Let's say I have a 500GB drive that has two partitions—250GB for Windows and 250GB for [INSERT POPULAR LINUX DISTRO\]—and when I use one, the other gets compressed, the one that I'm using is decompressed, and the partition is enlarged to fill the empty space.

https://redd.it/1tkcedy
@r_linux