@Plant_Noobs,
Welcome to NGA!
I agree with the previous comments.
The plant expanded taller because the light level in its current spot is much lower than where it was previously growing. It was in very bright light, perhaps even outdoors in full sun. If you can place the plant in bright light, this shoot will not "shrink" back to the previous tighter growth, but it will eventually grow new shoots and those will be tighter rosettes if in bright enough light.
Is the container a bowl with no hole for drainage? Succulents like this need to be in pots with drain holes to keep water from pooling. The potting mix looks like a dense black peat. Succulents prefer a looser mix with some gritty aerating material such as perlite. As others said, the main hazard of being too wet is that the plant may develop rot and die. Allow the soil of succulents such as this one to become completely dry to the touch before watering again. Any excess water needs to drain away so the soil isn't soggy. It might be ok in the current medium if it's allowed to dry out between waterings.
Best wishes for success!
Pat