An input file is processed according to hash algorithm that references sets of literals to preceding sets of literals to facilitate copy-offset command generation. Preceding instances are identified by generating a hash of the literal set and looking up a corresponding entry in a hash table. The hash table may be accessed by placing look-up requests in a FIFO buffer. When the FIFO buffer is full, generation of the hash chain is suspended until it is no longer full. When repeated literals are found, generation of the hash chain is likewise suspended. The hash chain is used to generate a command file, such as according to the LZ algorithm. Runs of consecutive literals are replaced by a run-length command. The command file may then be encoded using Huffman encoding.