If you repack the plaintext using zopfli, it does encode the text as you suggest.
Also I just tested something. If you stick a random extra letter onto the start of the string, the mistake goes away and the output shrinks by a byte. Is it possibly an issue with finding matches that start at byte 0...?
More testing: Removing the Ts that fail to match to get TOBEORNOTOBEOROBEORNOT shrinks the output by 2 bytes. Changing the first character to ZOBEORNOTOBEOROBEORNOT stays at the same shrunken size. Then removing that Z to get OBEORNOTOBEOROBEORNOT makes it balloon back up as now it fails to match the O twice.
If I take the original string and start prepending unique letters, the first one shrinks and fixes the matching, and then each subsequent letter adds one byte. So it's not that matching needs some particular alignment, it's only failing to match the very first byte.
A new test: XPPPPPPPP appears to encode as X, P, then a copy command. And PPPPPPPPP encodes as P, P, then a copy. Super wrong.
IIRC zlib won't consider matches at offset 0: https://github.com/madler/zlib/blob/5a82f71ed1dfc0bec044d970...
Well doing it by hand at this level is mostly decoding quasi-ASCII by hand, and the compression isn't making it significantly more painful.
If you reorder the static huffman table and byte align things, the encoded data could look more like:
So short lengths become 0x80 + length and short distances encode as themselves.This version is pretty easy to decode by hand, and still 16 bytes. I'm arguably cheating by removing the 3 bit header, but even 17 bytes would be good.
Though the encoder deciding to repeat those Ts doesn't make much sense, shouldn't this be compressed to literal("TOBEORNOT") copy(6,9) copy(9,15)?