diff --git a/CHANGELOG.md b/CHANGELOG.md
--- a/CHANGELOG.md
+++ b/CHANGELOG.md
@@ -1,3 +1,7 @@
+# 0.1.0.1
+
+* Fix bug compressing files that are not large
+
 # 0.1.0.0
 
 * Initial release.
diff --git a/bz3.cabal b/bz3.cabal
--- a/bz3.cabal
+++ b/bz3.cabal
@@ -1,6 +1,6 @@
 cabal-version:      3.4
 name:               bz3
-version:            0.1.0.0
+version:            0.1.0.1
 synopsis:           High-level bindings to bz3
 description:
     Streaming compression/decompression in bz3 format via lazy bytestrings
@@ -14,6 +14,7 @@
 extra-source-files:
     include/common.h
     include/libsais.h
+    test/data/LICENSE.bz3
 
 source-repository head
     type:     darcs
diff --git a/src/Codec/Bz3.hs b/src/Codec/Bz3.hs
--- a/src/Codec/Bz3.hs
+++ b/src/Codec/Bz3.hs
@@ -31,7 +31,7 @@
     loop st bs
   where
     loop st bs | BSL.null bs = pure []
-               | otherwise = do {(dc, rest) <- decNext st bs; (dc:) <$> loop st rest}
+               | otherwise = do {(dc, rest) <- decN st bs; (dc:) <$> loop st rest}
 
 -- will fail if bz3st cannot fit exotic big input
 compressFile :: BSL.ByteString -> BSL.ByteString
@@ -41,14 +41,12 @@
     let fileH = runPut (putFileH sz)
     pure (fileH<>BSL.fromChunks bb)
   where
-    loop _ []     = pure (0, [])
+    loop _ []     = pure (bSz, [])
     loop s (b:bs) | BS.length b > feed = let (next,b') = BS.splitAt feed b in loop s (next:b':bs)
     loop s (b:bs) = do
-        (csz, e) <- if osz<64
-            then pure (0xffffffff, b)
-            else encN s b
-        let chunk=BSL.toStrict $ runPut (putChunk (Chunk (fromIntegral csz) osz))
-        bimap (max osz) ((chunk:).(e:)) <$> loop s bs
+        (csz, e) <- encN s b
+        let ucsz=fromIntegral csz; chunk=BSL.toStrict $ runPut (putChunk (Chunk ucsz osz))
+        bimap (max ucsz) ((chunk:).(e:)) <$> loop s bs
       where
         osz=fromIntegral (BS.length b)
 
@@ -67,8 +65,8 @@
             bz3EncodeBlock st (castPtr bb) (fromIntegral sz)
         pure (enc, BS.BS (castForeignPtr buf) (fromIntegral enc))
 
-decNext :: ForeignPtr Bz3St -> BSL.ByteString -> LazyST.ST s (BS.ByteString, BSL.ByteString)
-decNext st inp = LazyST.unsafeIOToST $ do
+decN :: ForeignPtr Bz3St -> BSL.ByteString -> LazyST.ST s (BS.ByteString, BSL.ByteString)
+decN st inp = LazyST.unsafeIOToST $ do
     let (next, off, Chunk csz osz) = y (runGetOrFail getChunk inp)
     if osz>=64
         then do
@@ -84,7 +82,7 @@
                 Left e | e==Bz3Ok -> pure ()
                        | otherwise -> error =<< bz3Strerror st
             pure (BS.BS (castForeignPtr buf) (fromIntegral osz), next)
-        else let bb=BSL.toStrict (BSL.drop 8 $ BSL.take off inp) 
+        else let bb=BSL.toStrict (BSL.drop 8 $ BSL.take off inp)
              in pure (bb, next)
   where
     y (Right x) = x; y (Left (_, _, e)) = error e
diff --git a/src/Codec/Bz3/Binary.hs b/src/Codec/Bz3/Binary.hs
--- a/src/Codec/Bz3/Binary.hs
+++ b/src/Codec/Bz3/Binary.hs
@@ -36,7 +36,7 @@
 getChunk = do
     csz <- getWord32le; osz <- getWord32le
     if osz<64
-        then getSmallBlock csz
+        then getSmallBlock osz
         else getRegularBlock csz
     pure $ Chunk csz osz
 
diff --git a/test/data/LICENSE.bz3 b/test/data/LICENSE.bz3
new file mode 100644
Binary files /dev/null and b/test/data/LICENSE.bz3 differ