The problem#
Several years ago, I was in a ROM hacking IRC room where another regular Alchemic was reverse engineering the text system of the SNES game Shadowrun. He figured it out and wrote a python script to decompress the text but had some questions about why it was designed the way it was. So we're going to walk through figuring out how the code works, with some help from his notes, and try to understand the design.
If you don't want spoilers and would rather try to reverse engineer it yourself, just read up to the end of the Trace format section and see how much you can figure out on your own.