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Actually, in this instance you will find what you need to change in the actual unified.php (CSS) file. Maybe one day we will find a decent way to manage margins and padding in an overlay but not yet I am afraid.

What you need to look for are:

#spMainContainer .spGroupViewSection .spGroupViewHeader

This controls the space beneath and above eeach Group header block.

#spMainContainer .spGroupForumSection

And this controls the space between each individual forum block.

In both instances you need to adjust the padding and margins. The latter, I see, is set to 10px top and bottom for both so you may want to reduce all of these.

If you have the CSS cache turned on (Admin > Options > Global Setting) then you should probably turn it off while you make your adjustments and back on when you are happy with the end-result. Depending on browser settings you may need to cleat cached files regularly while testing as well.

As always we recommend the use of a child theme to ensure changes are not lost when upgrading. There are now Child Theme Frameworks available to download for all of our themes to make this simple and full and extensive details can be found on our Codex - Creating a Child Theme page: https://simple-press.com/docum.....ild-theme/

You're welcome.
You might note that those specific entries also can lead to other views being given the same paddings and margins so you may want to check those as well.