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My Chicken Laid a Tiny Egg
Tiny eggs are essentially a reproductive misfire. They occur when an egg is formed by mistake, without a normal yolk inside. Yolk size determines egg size, and fairy eggs rarely have a proper yolk. A normal egg is formed when a yolk is released in the oviduct and travels down through the chicken forming itself into a complete egg along the way.
More In Depth Info on Small Eggs Here pictures and video are also on the linked page