Compress Not Working--Case Sensitivity

[KnightmareVIIVIIXC]

I have my lists set to compress twice: once for each individual list so that my exclusions will work properly, and once at the end to compress fully the multiple lists that I use in order to remove redundant entries. The problem--or maybe it's a feature I overlooked--is that if a domain has an uppercase letter, HostlistCompiler doesn't acknowledge the redundant entries as redundant and leaves them in the list. For example, I have a list with the following entries after being compressed:
||2o7.net^
||ziffdavisetech.112.2O7.net^
||msstonojstemp.112.2O7.net^

Not sure why the second and third entries have a random capital O but I remember seeing this same thing occur in the Phishing Army list on Adguard DNS. There were two entries with the same name, but because one of them was capitalized, both entries were left in the list. There were a lot more 2o7.net entries but the compress transformation removed them, since ||2o7.net^ is in the list. Is it possible that these sites are supposed to be capitalized? I always thought that websites weren't case sensitive. Phishing Army has since fixed the entries in their list, so it doesn't happen anymore.