[proofplan]
We prove both directions using finite approximations. If the Gromov-Hausdorff closure of $\mathcal{C}$ is compact, then diameter is uniformly bounded and finitely many Gromov-Hausdorff balls at a fixed scale transfer finite nets from their centers to all spaces in $\mathcal{C}$. Conversely, from the uniform diameter and covering bounds we approximate each space in a sequence by nested finite nets of controlled cardinality, pass to a diagonal subsequence so all finite distance matrices converge, and build a compact limit space as the completion of the resulting countable pseudometric space. The finite nets then give Gromov-Hausdorff approximations from the original spaces to the limit at scales tending to zero.
[/proofplan]
[step:Transfer finite nets from a compact Gromov-Hausdorff closure]
Assume that $\mathcal{C}$ is precompact. Let $\overline{\mathcal{C}}$ denote its closure in the Gromov-Hausdorff metric $d_{GH}$; by hypothesis $\overline{\mathcal{C}}$ is compact. Here $d_{GH}$ denotes the Gromov-Hausdorff metric on isometry classes of compact metric spaces. For a compact metric space $Y$ and a number $r > 0$, define the open Gromov-Hausdorff ball
\begin{align*}
B_{GH}(Y,r) := \{X : X \text{ is a compact metric space and } d_{GH}(X,Y) < r\}.
\end{align*}
First, the diameter function is continuous with respect to $d_{GH}$. Indeed, if compact metric spaces $X$ and $Y$ satisfy $d_{GH}(X,Y) < \eta$, then there is a metric space $(Z,d_Z)$ and isometric embeddings
\begin{align*}
\iota_X: X &\to Z, &
\iota_Y: Y &\to Z
\end{align*}
such that the Hausdorff distance between $\iota_X(X)$ and $\iota_Y(Y)$ in $Z$ is less than $\eta$. For $x_1,x_2 \in X$, choose $y_1,y_2 \in Y$ with
\begin{align*}
d_Z(\iota_X(x_i),\iota_Y(y_i)) < \eta
\end{align*}
for $i \in \{1,2\}$. Then
\begin{align*}
d_X(x_1,x_2)
&= d_Z(\iota_X(x_1),\iota_X(x_2)) \\
&\leq d_Z(\iota_X(x_1),\iota_Y(y_1))
+ d_Z(\iota_Y(y_1),\iota_Y(y_2))
+ d_Z(\iota_Y(y_2),\iota_X(x_2)) \\
&< \operatorname{diam}(Y) + 2\eta.
\end{align*}
Taking the supremum over $x_1,x_2 \in X$ gives $\operatorname{diam}(X) \leq \operatorname{diam}(Y) + 2\eta$. Reversing the roles of $X$ and $Y$ gives
\begin{align*}
|\operatorname{diam}(X)-\operatorname{diam}(Y)| \leq 2\eta.
\end{align*}
Thus $\operatorname{diam}: \overline{\mathcal{C}} \to [0,\infty)$ is continuous, so compactness of $\overline{\mathcal{C}}$ gives
\begin{align*}
D := \sup_{X \in \overline{\mathcal{C}}} \operatorname{diam}(X) < \infty.
\end{align*}
In particular, $\operatorname{diam}(X) \leq D$ for every $X \in \mathcal{C}$.
Now fix $\varepsilon > 0$. Since $\overline{\mathcal{C}}$ is compact, there exist compact metric spaces
\begin{align*}
Y_1,\dots,Y_m \in \overline{\mathcal{C}}
\end{align*}
such that
\begin{align*}
\overline{\mathcal{C}} \subset \bigcup_{i=1}^m B_{GH}(Y_i,\varepsilon/4).
\end{align*}
For each $i \in \{1,\dots,m\}$, compactness of $Y_i$ gives a finite $\varepsilon/2$-net $B_i \subset Y_i$. Define
\begin{align*}
N(\varepsilon) := \max_{1 \leq i \leq m} |B_i|.
\end{align*}
Let $X \in \mathcal{C}$. Choose $i$ such that $d_{GH}(X,Y_i) < \varepsilon/4$. By the definition of $d_{GH}$, embed $X$ and $Y_i$ isometrically into a metric space $(Z,d_Z)$ so that their Hausdorff distance in $Z$ is less than $\varepsilon/4$. For every $b \in B_i$, choose $a_b \in X$ such that
\begin{align*}
d_Z(a_b,b) < \varepsilon/4.
\end{align*}
Let
\begin{align*}
A := \{a_b : b \in B_i\} \subset X.
\end{align*}
Then $|A| \leq |B_i| \leq N(\varepsilon)$. If $x \in X$, choose $y \in Y_i$ with $d_Z(x,y) < \varepsilon/4$, and then choose $b \in B_i$ with $d_{Y_i}(y,b) < \varepsilon/2$. Since the embedding of $Y_i$ is isometric,
\begin{align*}
d_X(x,a_b)
&= d_Z(x,a_b) \\
&\leq d_Z(x,y) + d_Z(y,b) + d_Z(b,a_b) \\
&< \varepsilon/4 + \varepsilon/2 + \varepsilon/4 \\
&= \varepsilon.
\end{align*}
Thus $A$ is an $\varepsilon$-net in $X$ with at most $N(\varepsilon)$ points. This proves the uniform covering bound.
[guided]
Assume that $\mathcal{C}$ is precompact, and write $\overline{\mathcal{C}}$ for its closure in the Gromov-Hausdorff metric $d_{GH}$. Here $d_{GH}$ denotes the Gromov-Hausdorff metric on isometry classes of compact metric spaces. For a compact metric space $Y$ and a number $r > 0$, define
\begin{align*}
B_{GH}(Y,r) := \{X : X \text{ is a compact metric space and } d_{GH}(X,Y) < r\}.
\end{align*}
Precompactness means precisely that $\overline{\mathcal{C}}$ is compact.
We first prove the diameter bound. The point is that spaces close in Gromov-Hausdorff distance have almost the same diameter. Let $X$ and $Y$ be compact metric spaces with $d_{GH}(X,Y) < \eta$. By the definition of the Gromov-Hausdorff metric, we may place both spaces isometrically into a common metric space $(Z,d_Z)$ by maps
\begin{align*}
\iota_X: X &\to Z, &
\iota_Y: Y &\to Z
\end{align*}
so that every point of $\iota_X(X)$ lies within $\eta$ of $\iota_Y(Y)$ and every point of $\iota_Y(Y)$ lies within $\eta$ of $\iota_X(X)$.
Take arbitrary points $x_1,x_2 \in X$. Choose $y_1,y_2 \in Y$ such that
\begin{align*}
d_Z(\iota_X(x_i),\iota_Y(y_i)) < \eta
\end{align*}
for $i \in \{1,2\}$. The triangle inequality in $Z$ gives
\begin{align*}
d_X(x_1,x_2)
&= d_Z(\iota_X(x_1),\iota_X(x_2)) \\
&\leq d_Z(\iota_X(x_1),\iota_Y(y_1))
+ d_Z(\iota_Y(y_1),\iota_Y(y_2))
+ d_Z(\iota_Y(y_2),\iota_X(x_2)) \\
&< \eta + \operatorname{diam}(Y) + \eta \\
&= \operatorname{diam}(Y) + 2\eta.
\end{align*}
Taking the supremum over all $x_1,x_2 \in X$ gives
\begin{align*}
\operatorname{diam}(X) \leq \operatorname{diam}(Y) + 2\eta.
\end{align*}
The same argument with $X$ and $Y$ interchanged gives
\begin{align*}
\operatorname{diam}(Y) \leq \operatorname{diam}(X) + 2\eta.
\end{align*}
Therefore
\begin{align*}
|\operatorname{diam}(X)-\operatorname{diam}(Y)| \leq 2\eta.
\end{align*}
This proves continuity of the diameter function on the Gromov-Hausdorff closure. Since a continuous real-valued function on a [compact space](/page/Compact%20Space) is bounded, the number
\begin{align*}
D := \sup_{X \in \overline{\mathcal{C}}} \operatorname{diam}(X)
\end{align*}
is finite. Hence $\operatorname{diam}(X) \leq D$ for every $X \in \mathcal{C}$.
Now fix $\varepsilon > 0$. We must produce one integer $N(\varepsilon)$ that works for every $X \in \mathcal{C}$. Compactness of $\overline{\mathcal{C}}$ supplies finitely many Gromov-Hausdorff balls of radius $\varepsilon/4$:
\begin{align*}
\overline{\mathcal{C}} \subset \bigcup_{i=1}^m B_{GH}(Y_i,\varepsilon/4),
\end{align*}
where $Y_1,\dots,Y_m \in \overline{\mathcal{C}}$. Each $Y_i$ is compact, so it has a finite $\varepsilon/2$-net $B_i \subset Y_i$. Define
\begin{align*}
N(\varepsilon) := \max_{1 \leq i \leq m} |B_i|.
\end{align*}
Let $X \in \mathcal{C}$. Choose $i$ with $d_{GH}(X,Y_i) < \varepsilon/4$. Put $X$ and $Y_i$ into a common metric space $(Z,d_Z)$ so that their Hausdorff distance is less than $\varepsilon/4$. For each net point $b \in B_i$, choose a point $a_b \in X$ satisfying
\begin{align*}
d_Z(a_b,b) < \varepsilon/4.
\end{align*}
Set
\begin{align*}
A := \{a_b : b \in B_i\} \subset X.
\end{align*}
Then $|A| \leq |B_i| \leq N(\varepsilon)$.
We verify that $A$ is an $\varepsilon$-net in $X$. Given $x \in X$, choose $y \in Y_i$ with $d_Z(x,y) < \varepsilon/4$, using Hausdorff closeness. Then choose $b \in B_i$ with $d_{Y_i}(y,b) < \varepsilon/2$, using the fact that $B_i$ is an $\varepsilon/2$-net. Since the embedding of $Y_i$ into $Z$ is isometric, $d_Z(y,b)=d_{Y_i}(y,b)$. Therefore
\begin{align*}
d_X(x,a_b)
&= d_Z(x,a_b) \\
&\leq d_Z(x,y) + d_Z(y,b) + d_Z(b,a_b) \\
&< \varepsilon/4 + \varepsilon/2 + \varepsilon/4 \\
&= \varepsilon.
\end{align*}
Thus every point of $X$ lies within $\varepsilon$ of some point of $A$, and $A$ has at most $N(\varepsilon)$ points. This proves the uniform covering bound.
[/guided]
[/step]
[step:Choose nested finite nets for an arbitrary sequence]
Assume conversely that the uniform diameter and covering bounds hold. Let $(X_j,d_j)_{j=1}^{\infty}$ be a sequence in $\mathcal{C}$. We prove that it has a Gromov-Hausdorff convergent subsequence.
For each $k \in \mathbb{N}$, set
\begin{align*}
\varepsilon_k := 2^{-k}.
\end{align*}
By the covering hypothesis, choose $M_k \in \mathbb{N}$ such that every $X \in \mathcal{C}$ admits an $\varepsilon_k$-net with at most $M_k$ points. Replacing $M_k$ by the nondecreasing sequence
\begin{align*}
\widetilde{M}_k := \sum_{\ell=1}^k M_\ell,
\end{align*}
we may construct, for each $j$, finite subsets
\begin{align*}
A_{j,k} = \{x_{j,1},\dots,x_{j,\widetilde{M}_k}\} \subset X_j
\end{align*}
such that $A_{j,k} \subset A_{j,k+1}$ and $A_{j,k}$ is an $\varepsilon_k$-net in $X_j$. Repeated labels are allowed: if fewer than $\widetilde{M}_k$ distinct points are needed, we repeat already chosen points so that the index set is exactly $\{1,\dots,\widetilde{M}_k\}$.
The diameter bound gives
\begin{align*}
0 \leq d_j(x_{j,a},x_{j,b}) \leq D
\end{align*}
for all $j$, all $k$, and all $a,b \in \{1,\dots,\widetilde{M}_k\}$.
[/step]
[step:Pass to a diagonal subsequence of all finite distance matrices]
For each fixed $k \in \mathbb{N}$, the distance matrix
\begin{align*}
\left(d_j(x_{j,a},x_{j,b})\right)_{1 \leq a,b \leq \widetilde{M}_k}
\end{align*}
lies in the compact cube $[0,D]^{\widetilde{M}_k^2}$. Hence, by compactness of this finite-dimensional cube, the sequence has a subsequence along which this matrix converges.
Apply this successively for $k=1,2,\dots$ and take the diagonal subsequence. Relabel it as $(X_j,d_j)$ again. Then, for every pair $a,b \in \mathbb{N}$, the limit
\begin{align*}
\rho(a,b) := \lim_{j \to \infty} d_j(x_{j,a},x_{j,b})
\end{align*}
exists whenever $a$ and $b$ both occur among the labels of some $A_{j,k}$.
The function
\begin{align*}
\rho: \mathbb{N} \times \mathbb{N} &\to [0,D]
\end{align*}
is a pseudometric. Symmetry and $\rho(a,a)=0$ follow by taking limits from the corresponding properties of $d_j$. For the triangle inequality, fix $a,b,c \in \mathbb{N}$. For all sufficiently large $k$, the labels $a,b,c$ occur in $A_{j,k}$, and for every $j$,
\begin{align*}
d_j(x_{j,a},x_{j,c})
\leq d_j(x_{j,a},x_{j,b}) + d_j(x_{j,b},x_{j,c}).
\end{align*}
Taking $j \to \infty$ gives
\begin{align*}
\rho(a,c) \leq \rho(a,b) + \rho(b,c).
\end{align*}
Thus $\rho$ is a pseudometric.
[guided]
The goal of this step is to make all finite distance data converge at once. For a fixed scale $k \in \mathbb{N}$, the labelled finite net $A_{j,k}$ has exactly $\widetilde{M}_k$ labels, so its distance data form the matrix
\begin{align*}
\left(d_j(x_{j,a},x_{j,b})\right)_{1 \leq a,b \leq \widetilde{M}_k}.
\end{align*}
Each entry lies in $[0,D]$ by the uniform diameter bound, hence the whole matrix lies in the compact finite-dimensional cube $[0,D]^{\widetilde{M}_k^2}$. Compactness of this cube gives a subsequence along which the $k$-th matrix converges.
We need convergence for every $k$ simultaneously, not just for one fixed $k$. Apply the preceding compactness argument successively for $k=1,2,3,\dots$: first choose a subsequence on which the $k=1$ matrices converge, then a further subsequence on which the $k=2$ matrices converge, and continue. Taking the diagonal subsequence preserves convergence for each fixed $k$, because after stage $k$ all later diagonal terms lie in the subsequence selected for that $k$.
Relabel this diagonal subsequence as $(X_j,d_j)$ again. For labels $a,b \in \mathbb{N}$, choose $k \in \mathbb{N}$ so large that both $a$ and $b$ occur among the labels of $A_{j,k}$. Define
\begin{align*}
\rho(a,b) := \lim_{j \to \infty} d_j(x_{j,a},x_{j,b}).
\end{align*}
This limit exists by the diagonal construction. Moreover $0 \leq \rho(a,b) \leq D$ because each term in the convergent sequence lies in $[0,D]$.
We now verify that
\begin{align*}
\rho: \mathbb{N} \times \mathbb{N} &\to [0,D]
\end{align*}
is a pseudometric. Since each $d_j$ is a metric, $d_j(x_{j,a},x_{j,a})=0$ for every $j$, and taking limits gives $\rho(a,a)=0$. Similarly, $d_j(x_{j,a},x_{j,b})=d_j(x_{j,b},x_{j,a})$ for every $j$, so $\rho(a,b)=\rho(b,a)$.
It remains to check the triangle inequality. Fix $a,b,c \in \mathbb{N}$, and choose $k \in \mathbb{N}$ so large that all three labels occur in $A_{j,k}$. For every $j$, the metric triangle inequality in $X_j$ gives
\begin{align*}
d_j(x_{j,a},x_{j,c})
\leq d_j(x_{j,a},x_{j,b}) + d_j(x_{j,b},x_{j,c}).
\end{align*}
Taking limits as $j \to \infty$ preserves this inequality because all three distance sequences converge, so
\begin{align*}
\rho(a,c) \leq \rho(a,b) + \rho(b,c).
\end{align*}
Thus $\rho$ is a pseudometric on $\mathbb{N}$.
[/guided]
[/step]
[step:Complete the limiting pseudometric space and prove compactness]
Define an [equivalence relation](/page/Equivalence%20Relation) $\sim$ on $\mathbb{N}$ by
\begin{align*}
a \sim b \quad \Longleftrightarrow \quad \rho(a,b)=0.
\end{align*}
Let
\begin{align*}
Q := \mathbb{N}/\sim
\end{align*}
be the quotient set, and define
\begin{align*}
d_Q: Q \times Q &\to [0,D] \\
([a],[b]) &\mapsto \rho(a,b).
\end{align*}
The pseudometric properties of $\rho$ imply that $d_Q$ is a well-defined metric. Let $(Y,d_Y)$ be the metric completion of $(Q,d_Q)$.
We show that $Y$ is compact. It suffices to show that $Y$ is complete and totally bounded. Completeness holds by construction. To prove [total boundedness](/page/Total%20Boundedness), fix $\varepsilon > 0$ and choose $k \in \mathbb{N}$ with $\varepsilon_k < \varepsilon/2$. We claim that
\begin{align*}
Q_k := \{[1],\dots,[\widetilde{M}_k]\} \subset Q
\end{align*}
is an $\varepsilon$-net in $Q$.
Let $a \in \mathbb{N}$. Choose $\ell \geq k$ such that $a \leq \widetilde{M}_\ell$. Since $A_{j,k}$ is an $\varepsilon_k$-net in $X_j$ and $A_{j,k} \subset A_{j,\ell}$, for each $j$ there exists $b_j \in \{1,\dots,\widetilde{M}_k\}$ such that
\begin{align*}
d_j(x_{j,a},x_{j,b_j}) < \varepsilon_k.
\end{align*}
The set $\{1,\dots,\widetilde{M}_k\}$ is finite, so some $b \in \{1,\dots,\widetilde{M}_k\}$ occurs as $b_j$ along an infinite subsequence. Passing to that subsequence and taking limits gives
\begin{align*}
d_Q([a],[b]) = \rho(a,b) \leq \varepsilon_k < \varepsilon/2 < \varepsilon.
\end{align*}
Therefore $Q_k$ is an $\varepsilon$-net in $Q$. Since $Q$ is dense in $Y$, the same finite set is an $\varepsilon$-net in $Y$ after slightly increasing the radius, and because $\varepsilon > 0$ was arbitrary, $Y$ is totally bounded. Hence $Y$ is compact.
[guided]
We now build the candidate Gromov-Hausdorff limit. The limiting distance function $\rho$ may assign distance zero to two different labels, so it is a pseudometric rather than necessarily a metric. We remove this defect by identifying labels at zero distance.
Define $a \sim b$ exactly when $\rho(a,b)=0$, and let
\begin{align*}
Q := \mathbb{N}/\sim.
\end{align*}
For equivalence classes $[a],[b] \in Q$, define
\begin{align*}
d_Q([a],[b]) := \rho(a,b).
\end{align*}
This is well-defined: if $a \sim a'$ and $b \sim b'$, then the triangle inequality for $\rho$ gives
\begin{align*}
\rho(a,b)
&\leq \rho(a,a') + \rho(a',b') + \rho(b',b) \\
&= \rho(a',b'),
\end{align*}
and the same argument with $(a,b)$ and $(a',b')$ interchanged gives equality. The function $d_Q$ is a metric because the only remaining zero distances occur between identical equivalence classes.
Let $(Y,d_Y)$ be the metric completion of $(Q,d_Q)$. Completeness is built into the definition of completion, so compactness will follow once we prove total boundedness.
Fix $\varepsilon > 0$. Choose $k \in \mathbb{N}$ such that
\begin{align*}
\varepsilon_k = 2^{-k} < \varepsilon/2.
\end{align*}
We claim that the finite set
\begin{align*}
Q_k := \{[1],\dots,[\widetilde{M}_k]\}
\end{align*}
is an $\varepsilon$-net in $Q$. Take any class $[a] \in Q$. Choose $\ell \geq k$ with $a \leq \widetilde{M}_\ell$, so the label $a$ appears in the finite net $A_{j,\ell}$ for every $j$. Since $A_{j,k}$ is an $\varepsilon_k$-net in $X_j$, for every $j$ there exists a label
\begin{align*}
b_j \in \{1,\dots,\widetilde{M}_k\}
\end{align*}
such that
\begin{align*}
d_j(x_{j,a},x_{j,b_j}) < \varepsilon_k.
\end{align*}
There are only finitely many possible values of $b_j$, so at least one value $b \in \{1,\dots,\widetilde{M}_k\}$ occurs for infinitely many $j$. Restricting to that infinite subsequence and using the already established convergence of distances, we get
\begin{align*}
d_Q([a],[b])
= \rho(a,b)
= \lim d_j(x_{j,a},x_{j,b})
\leq \varepsilon_k
< \varepsilon.
\end{align*}
Thus every point of $Q$ lies within $\varepsilon$ of the finite set $Q_k$.
Because $Q$ is dense in its completion $Y$, total boundedness passes from $Q$ to $Y$: given any $y \in Y$, choose $q \in Q$ with $d_Y(y,q) < \varepsilon/2$, then choose $q_k \in Q_k$ with $d_Y(q,q_k) < \varepsilon/2$, and obtain
\begin{align*}
d_Y(y,q_k) \leq d_Y(y,q) + d_Y(q,q_k) < \varepsilon.
\end{align*}
Thus $Y$ is totally bounded. By the metric-space compactness criterion that a [complete metric space](/page/Complete%20Metric%20Space) is [compact](/page/Compactness) if and only if it is [totally bounded](/page/Totally%20Bounded%20Space), $Y$ is compact.
[/guided]
[/step]
[step:Compare each original space with the limiting finite model]
For each $k \in \mathbb{N}$, define
\begin{align*}
r_k := \varepsilon_k
\quad\text{and}\quad
s_k := k+2.
\end{align*}
Then $\varepsilon_{s_k} < r_k/2$. By the total boundedness argument from the preceding step, the finite set
\begin{align*}
Q_{s_k} := \{[1],\dots,[\widetilde{M}_{s_k}]\} \subset Y
\end{align*}
is an $r_k$-net in $Y$. Also $A_{j,s_k}$ is an $\varepsilon_{s_k}$-net in $X_j$, hence an $r_k$-net in $X_j$.
For fixed $k$, the convergence of the finite distance matrices gives
\begin{align*}
\delta_{j,k}
:= \max_{1 \leq a,b \leq \widetilde{M}_{s_k}}
\left|d_j(x_{j,a},x_{j,b}) - d_Y([a],[b])\right|
\longrightarrow 0
\end{align*}
as $j \to \infty$.
Define a relation
\begin{align*}
R_{j,k} \subset X_j \times Y
\end{align*}
by declaring $(x,y) \in R_{j,k}$ if and only if there exists $a \in \{1,\dots,\widetilde{M}_{s_k}\}$ such that
\begin{align*}
d_j(x,x_{j,a}) < r_k
\quad\text{and}\quad
d_Y(y,[a]) < r_k.
\end{align*}
This relation is a correspondence. Indeed, if $x \in X_j$, the fact that $A_{j,s_k}$ is an $r_k$-net gives $a \in \{1,\dots,\widetilde{M}_{s_k}\}$ with $d_j(x,x_{j,a}) < r_k$, and then $(x,[a]) \in R_{j,k}$. If $y \in Y$, the fact that $Q_{s_k}$ is an $r_k$-net gives $a \in \{1,\dots,\widetilde{M}_{s_k}\}$ with $d_Y(y,[a]) < r_k$, and then $(x_{j,a},y) \in R_{j,k}$.
If $(x,y),(x',y') \in R_{j,k}$ are witnessed by labels $a,b \in \{1,\dots,\widetilde{M}_{s_k}\}$, then the triangle inequality in $X_j$ and $Y$ gives
\begin{align*}
\left|d_j(x,x') - d_Y(y,y')\right|
&\leq d_j(x,x_{j,a})
+ \left|d_j(x_{j,a},x_{j,b}) - d_Y([a],[b])\right| \\
&\quad + d_Y([a],y)
+ d_j(x',x_{j,b})
+ d_Y([b],y') \\
&< 4r_k + \delta_{j,k}.
\end{align*}
Define the distortion of a correspondence $R \subset X_j \times Y$ by
\begin{align*}
\operatorname{dis}(R)
:= \sup\left\{\left|d_j(u,u') - d_Y(v,v')\right| : (u,v),(u',v') \in R\right\}.
\end{align*}
The preceding estimate shows that
\begin{align*}
\operatorname{dis}(R_{j,k}) \leq 4r_k+\delta_{j,k}.
\end{align*}
By the [correspondence-distortion characterization of the Gromov-Hausdorff metric](/page/Gromov-Hausdorff%20Metric), which states that
\begin{align*}
d_{GH}(X_j,Y) \leq \frac{1}{2}\operatorname{dis}(R)
\end{align*}
for every correspondence $R \subset X_j \times Y$, we obtain
\begin{align*}
d_{GH}(X_j,Y) \leq \frac{1}{2}\left(4r_k+\delta_{j,k}\right)
= \frac{1}{2}\left(4\varepsilon_k+\delta_{j,k}\right).
\end{align*}
[guided]
We compare $X_j$ with the candidate limit $Y$ through finite labelled models. For each $k \in \mathbb{N}$, define
\begin{align*}
r_k := \varepsilon_k
\quad\text{and}\quad
s_k := k+2.
\end{align*}
Then $\varepsilon_{s_k}<r_k/2$. The finite set
\begin{align*}
Q_{s_k}:=\{[1],\dots,[\widetilde{M}_{s_k}]\}\subset Y
\end{align*}
is an $r_k$-net in $Y$ by the total boundedness argument, and $A_{j,s_k}$ is an $\varepsilon_{s_k}$-net in $X_j$, hence also an $r_k$-net in $X_j$.
For this fixed $k$, define
\begin{align*}
\delta_{j,k}
:= \max_{1 \leq a,b \leq \widetilde{M}_{s_k}}
\left|d_j(x_{j,a},x_{j,b}) - d_Y([a],[b])\right|.
\end{align*}
The finite distance matrices converge along the chosen subsequence, so $\delta_{j,k}\to 0$ as $j\to\infty$.
Define a relation
\begin{align*}
R_{j,k}\subset X_j\times Y
\end{align*}
by declaring $(x,y)\in R_{j,k}$ exactly when there is a label $a\in\{1,\dots,\widetilde{M}_{s_k}\}$ such that
\begin{align*}
d_j(x,x_{j,a})<r_k
\quad\text{and}\quad
d_Y(y,[a])<r_k.
\end{align*}
This relation is a correspondence. If $x\in X_j$, the $r_k$-net property of $A_{j,s_k}$ gives a label $a$ with $d_j(x,x_{j,a})<r_k$, and then $(x,[a])\in R_{j,k}$. If $y\in Y$, the $r_k$-net property of $Q_{s_k}$ gives a label $a$ with $d_Y(y,[a])<r_k$, and then $(x_{j,a},y)\in R_{j,k}$.
Now take two related pairs $(x,y),(x',y')\in R_{j,k}$, witnessed by labels $a,b\in\{1,\dots,\widetilde{M}_{s_k}\}$. The triangle inequality in $X_j$ and $Y$ gives
\begin{align*}
\left|d_j(x,x') - d_Y(y,y')\right|
&\leq d_j(x,x_{j,a})
+ \left|d_j(x_{j,a},x_{j,b}) - d_Y([a],[b])\right| \\
&\quad + d_Y([a],y)
+ d_j(x',x_{j,b})
+ d_Y([b],y') \\
&< 4r_k + \delta_{j,k}.
\end{align*}
Define the distortion of a correspondence $R \subset X_j \times Y$ by
\begin{align*}
\operatorname{dis}(R)
:= \sup\left\{\left|d_j(u,u') - d_Y(v,v')\right| : (u,v),(u',v') \in R\right\}.
\end{align*}
The preceding inequality for arbitrary pairs in $R_{j,k}$ proves
\begin{align*}
\operatorname{dis}(R_{j,k}) \leq 4r_k+\delta_{j,k}.
\end{align*}
By the [correspondence-distortion characterization of the Gromov-Hausdorff metric](/page/Gromov-Hausdorff%20Metric), every correspondence $R\subset X_j\times Y$ satisfies
\begin{align*}
d_{GH}(X_j,Y)\leq \frac{1}{2}\operatorname{dis}(R).
\end{align*}
Applying this to $R_{j,k}$ yields
\begin{align*}
d_{GH}(X_j,Y)
\leq \frac{1}{2}\left(4r_k+\delta_{j,k}\right)
= \frac{1}{2}\left(4\varepsilon_k+\delta_{j,k}\right).
\end{align*}
[/guided]
[/step]
[step:Conclude sequential precompactness and hence precompactness]
Choose an increasing sequence of indices $j_k$ so large that
\begin{align*}
\delta_{j_k,k} < \varepsilon_k.
\end{align*}
The preceding estimate gives
\begin{align*}
d_{GH}(X_{j_k},Y)
\leq \frac{1}{2}\left(4\varepsilon_k+\delta_{j_k,k}\right)
< \frac{5}{2}\varepsilon_k.
\end{align*}
Since $\varepsilon_k = 2^{-k} \to 0$, we have
\begin{align*}
d_{GH}(X_{j_k},Y) \to 0.
\end{align*}
Thus every sequence in $\mathcal{C}$ has a Gromov-Hausdorff convergent subsequence with compact limit. In a [metric space](/page/Metric%20Space), precompactness is equivalent to every sequence having a Cauchy subsequence, equivalently a subsequence converging in the completion. Applying this criterion to the metric space of isometry classes of compact metric spaces with the Gromov-Hausdorff metric shows that $\mathcal{C}$ is precompact in the Gromov-Hausdorff topology. Combining this with the first direction proves the theorem.
[/step]