No, we are not saying that. We are saying that the entirety of space - and not just its contents - have been compressed into a point (ignoring quantum gravit

No, we are not saying that. We are saying that the entirety of space - and not just its contents - have been compressed into a point (ignoring quantum gravity for now). Any two points in space have been arbitrarily close if you play the movie backwards sufficiently close to the first moment.