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I've made a single .img. It's a minimal Ubuntu which includes a rootfs and various installs. A kernel and kernel modules are installed.

I'd like to compress my .img and have the bootloader load uncompress it and load it into RAM (I don't want any persistence). I've been reading the grub manual, but still don't know how to try to boot either my .img or a compressed version.

How can I boot my .img into RAM? Or, is it impossible?

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Such compressed filesystem is called squashfs, it is used in many distros for live CD.

Loading fs in RAM seems what Grub command map does, also map --mem.