GTA V is a massive game that originally pushed the PS3 to its hardware limits. In its standard form, the game requires significant storage (approximately 18–20 GB for the initial install) to handle the sprawling map of Los Santos and its complex AI.
Otherwise, spend $20 on a used physical copy of GTA V for PS3. It may take up the same space, but it will work flawlessly every single time—no compression required.