I've seen suitcases with expansion gussets before, but industrial designer Andrea Ponti has gone the other way: His Jollying Pebble suitcase collapses nearly flat.
It's worth noting that Ponti is based in Hong Kong, a city not known for having gigantic apartments with lots of storage space. For the frequent traveler living out of a tiny space, this seems like an ideal solution.
"Its innovative hybrid construction solves multiple issues. The hard front and back shells protect the contents without losing shape. The soft sides make it easy to expand or collapse the suitcase with one hand, allowing for hassle-free storage when not in use. Jollying Pebble packs only high quality components: durable pull and carry handles, ultra-smooth noiseless wheels, all-around zipper, TSA combination lock, and custom-made, water and tear resistant textiles matching the colors of the hard shells."
"It also comes with a unique color-matching stand for vertical storage when folded."