Missing dgn file - completely disappeared.

Hi everyone, I'm hoping you can help me to recover a file I was working on, or at least find out what on earth happened so we can prevent it happening again. I am somewhat new to MicroStation so please forgive me if my terminology is incorrect.

We were using MicroStation V8 2004 edition and had a dgn open wherein we were dropping a level to the bottom of the design. All was successfull, and the message popped up asking if we wanted to compress the file, I selected yes.

Then the dreaded Microstation has encountered an error, choose abort, ignore etc message appeared. I followed the recommendations and selected abort. Went to go reopen my file but it was no longer in the folder it was located in. When opening MicroStation the manager to open a file to work on appears and the file is listed there (as it was the last worked on file) however the OK button is greyed out. A windows search returned a shortcut to the file in the recent items folder, however when I try to open it it says that the file no longer exists.

Looked at the exception/log which has the path of the file...go there and it is no longer there.

The only similar thing I have found on this was this topic from 2 years ago. (http://communities.bentley.com/products/microstation/microstation_v8_2004_edition/f/142/p/56857/134846.aspx#134846)

Does anyone have any suggestions on how I can access the file/a backup/stop it happening again?  Any suggestions are very much appreciated.