Answer:
In optics, a magnification refers to the process of enlarging the apparent size of an object, not the physical one, you can call it the virtual size of the object.
Specifically, magnification refers to the number as such, if it's less than one, it refers to a reduction size, which can also be called de-magnification.
For example, a convex lens make things look bigger, there's involved the magnification concept. Another popular example is a microcoscope, which makes small things to look bigger.
So, in this case, a maginification of -2.5 refers to de-magnification, because -2.5 < 1. Basically, the mirror will make objects seem smaller than the real one.
On the other hand, chromatic aberration occurs when a mirror is not able to bring all wavelengths colors into the same plane or focal point, that's why the image seems like distiorted.