Taken from a member in Hondatech:
"Overlap and Compression- A very common idea, although for the most part incorrect, is that overlap bleeds off compression. Overlap, by itself, does not bleed off compression. Overlap is the angle between the exhaust closing and intake opening and is used to tune the exhaust's ability draw in additional intake charge as well as tuning idle vacuum and controlling power band width. Cylinder pressure is generated during the compression cycle, after the intake valve has closed and before the exhaust opens. Within practical limits, an early intake closing and late exhaust opening will maintain the highest cylinder pressure. By narrowing the Lobe Seperation Angle 'LSA' for a given lobe duration, the overlap increases, but the cylinder pressure can be increased as well. Thus cylinder pressure/compression can actually increase in this scenario, by the earlier intake closing and later exhaust opening. By increasing duration for a given LSA, the overlap will increase, the intake closing will be delayed, and the exhaust opening will occur earlier. This will decrease cylinder pressure, but the decrease/bleed-off of compression is not due to the overlap, it is due to the intake closing and exhaust opening events."
So the overlap doesn't bump compression. It sounds like when both intake and exhaust valves are open at the same time, more air is escaping the cylinder, effectively dropping dynamic compression.