When you use collapse transformations, it changes the render order for affected comps and layers. Instead of rendering the inner layers of a precomp inside the precomp, then rendering the precomp itself as a layer with the main containing comp, collapse transformations basically pulls the precomp's layers into the main comp and then applies any transforms/effects done to the precomp layer itself directly and individually to all its contained layers.
As you've noted, this can have a really drastic and perhaps unexpected result.
Your simplest solution here is probably to scale up in the precomp to the maximum size you'll need and leave collapse transformations off.
Walter Soyka
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