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Fair point, there is compact drop handlebar that are quite long in reach but probably won't be as long as the one pictured which looked to be possibly 100-110mm reach.
The stem look like a -17 which is pretty aggressive, flipping it should put the handlebar higher, unless you're happy with the drop.
edscoble
Maybe I'm being stupid but wouldn't that be worse if it's already too small? Probably wants a longer stem if anything.