Uh, not really? I'm pretty sure that identifiers are automatically replaced somehow with conventional editors but a general minification to the degree required by IOCCC is never automatic.
If you are interested in an actual minification process of a winning IOCCC entry, Don Yang [1], who has eight (!) winning entries, has put a compressed screencast alongside with recent winning entries (example: [2] is a screencast for [3]). My experience (I too have one winning entry) had been similar.
Actually I do think Yang's screencast is kind of unusual, as he seems to start with a very clear vision and the vision seems to remain intact throughout the process. (Or the screencast may have simply omitted experimentation processes...) By comparison, this [1] is my version of notes towards my winning entry [2], which contains a lot of failed approaches and mistakes :-)
Possibly there were some assisting tools, but most likely nothing more complicated than search-and-replace. Handcrafting these things is the whole art of the IOCCC.
Many years ago I wrote some obfuscated Perl, assisted by the fact that the language is pretty obfuscated to start with. https://flatline.org.uk/snowflake.pl.txt - I think I may have had a tool to help it fit the template, but since you can't have a space in the middle of an operator restructuring the program to make the operators fit the snowflake was a major part of the effort.
While there's an "unobfuscated" version of the emulator program in this thread, it's clearly not the same program - there's no "switch/case" in the obfuscated version.
The instruction decode mechanism is a chain of "e--||(expression), e--|| ..." expressions. At the point where e-- is zero the expression will be evaluated.
The program makes heavy use of the equivalence between "index[pointer]" and "pointer[index]", presumably to save brackets.
The "cheats" are 1879 bytes of table data stored in the bios image :-).
If you liked this, I also suggest take a look at Christopher Mills entry from 2018, which is a PDP-7 emulator, which doesn't use the BIOS tables trick.
Edit: 8086tiny.freeforums.net is functional and has had a few recent posts.