I went out to start my 88 N/A before work today and it was pretty cold(below freezing) outside. The engine turned over normally a few times and then suddenly lost compression. The starter just turns smoothly now instead of loping like it used to. I am a little worried but hoping it's just the cold. Is it normal for cold weather to cause it to lose nearly all of its compression?

 

If anything, cold air/motor creates HIGHER compression.

The only way you'll know for sure is to do a compression test.

 

Remove a spark plug from each rotor housing, squirt in an ounce or so of oil, replace the plugs and crank the engine. If the starter motor still spins freely, it may be that the starter motor solenoid has failed and the starter motor gear is not engaging the flywheel.