As I have checked some online dictionaries, I have found 'shorten' and 'shrink' as opposites of the 'stretch' word. But, I am not sure, yet.
As an example, suppose that shrink is the correct word, then I say in this figure
I am shrinking the plot from top to bottom or stretching vice-versa.
Best Answer
Shrink can work. I would also consider "compress" as a good option. "Reduce" can also work
You could ask this on English Language and Usage to get additional ideas.