"zip warning: name not matched" while compressing a directory

This error can also be caused by symbolic links in the directory tree being compressed.

If these don't have correct destinations (perhaps because the directory has been moved or copied from elsewhere), zip will attempt to follow the symlink to archive the target file.

You can avoid this (and also get the effect you probably want anyway, which is not to archive multiple copies of the file) by using the -y (or --symlinks) option.

Your command should be:

zip -p password -r /Volumes/Storage\ 4/archive.zip /Volumes/GGZ/faster/mybigfolder/

The manual page (man zip), shows you should have:

zip <options> <archive> <inpath...>

Also, the -r option for recursion is highly recommended over the "*" shell glob for this.