1. To make smaller; to decrease the size or scope of. Not a standard word; often used for the humor derived from the fact that it mimics the sound of other real, often technical-sounding words ending in -fy, such as "magnify," "rarefy," "terrify," and "mollify."
"Whoa whoa whoa, this picture is way too big. Smallify that shit, please."
"We decided to smallify the layout of the room."