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I don't know how long this flag has been there, but -z does mean compression in-flight in rsync.

> -z, --compress compress file data during the transfer

You're totally right! If anything the gsutil's -Z/z doesn't align with rsync's -Z/z, and gsutil's -J/j is a better match for what rsync's -Z/z does. I added -J/j well after -Z/z was there so it's something that we have to life with unfortunately.

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