There's too many variables with a compression test to pick a octane rating. The motor could be cold, hot, somewhere in between, been sitting for a few days and are relatively dry, maybe the rings are a little worn, maybe port height yielding pumping loss at cranking RPM, relation to sea level, density of the air, ambient temperature etc. etc. You're guage could be inaccurate as well.
How did you notice the tight squish? Did you detonate? You could put higher compression domes in it, but you may be risking detonation. I would just monitor the cylinders for detonation and dont do any extended WOT runs until you're confident. It's risky, but it will definately get back some response.
Hey nothing wrong with learning, you would've never knew what squish ratio was if you had a engine builder take care of it for you. Also engine builders make mistakes too, and some people who you thought were reputable are not. Only thing guaranteed is the wrench you turn.