Somehow optimizations of lzma_lzma_optimum_normal by the IBM XL C compiler cause it to crash. Simply disable optimizations of this source file with a pragma.
@@ -8,6 +8,9 @@
// You can do whatever you want with this file.
//
///////////////////////////////////////////////////////////////////////////////
+#if defined(__IBMC__)
+# pragma options optimize=0
+#endif
#include "lzma_encoder_private.h"
#include "fastpos.h"