There is no confusion that it might mean something else.
Yes, there IS confusion. Are we supposed to infer that the thing that the new 10-times-smaller version is being compared to was already considered small? That's what implied, but nobody knows for sure because the person saying it is lazily using a common, and poorly thought out, construction that doesn't actually tell us that.
No, you're not. It is perfectly reasonable for someone to say something like, "The Small Magellanic Cloud is the smaller of the two Magellanic Clouds," without implying it is smaller than a breadbox or even small in general.
OK. But let's say you don't know how big the Small Magellanic Cloud is, relative to, say, the Milky Way, or Andromeda, or anything else. And then someone says, "We've just found a new galaxy, hiding behind a dust cloud, and it's three times smaller than the Magellanic Cloud." What are you supposed to gather from that use?
Fine, you don't like the wording
No, I don't like people conveying information in a way that forces you to go research something they mentioned without providing any useful context. When somebody cites a comparative size, but doesn't explain why (or if) that comparison is meaningful, then it's a waste of time. Especially when the communication is theoretically about science and/or technology.