A neurological disorder in which objects appear small and far away; the subject perceives him- or herself as bigger than usual. Micropsia is the opposite of macropsia, and can be caused by optical distortion, eye conditions, migraines, epilepsy, or psychoactive drugs. Another name for the syndrome is Alice in Wonderland Syndrome.
The issue is typically temporary in nature. Sometimes it is caused by epilepsy or Epstein-Barr virus. The main group of people affected by this condition are children between 5-10 years of age.
Example: The patient reports episodes in which the entire world looks shrunken, “like looking through the wrong end of binoculars.”
Here is a more in-depth look at the condition: http://www.wisegeek.com/what-is-micropsia.htm