For L3 larvae, what's better? Terrarium or cup?

I've been keeping my L3 Grantii larva in a terrarium with plenty of space, but I've been considering putting him in a tighter container, maybe 10x10 inches, that will help keep the soil deeper and more compact, because as I understand it, larvae are somewhat of claustrophiles, right? He hasn't been pupating and I assume that may just be because the soil is too loose because there's just too much room.

 
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