If you include tiny pockets of air within the folded up shirt, sure, technically. Practically? No
Folding it in different ways to achieve different shapes (long cylinder, ball, roughly cube, etc) may allow it to fit in different areas but it should basically be the same volume.
See also: packing problems (https://en.wikipedia.org/wiki/Packing_problems), although maybe not as applicable to something as malleable as a tshirt.
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