Watch out for increased shimmy at speed with a short stem. Noticed this with a 100 mm stem on my TCR in a race this week.
I set saddle as toronte does, plumbline down from base of kneecap to pedal axle. Height is set with a 25-30 degree bend in the knee when pedal is at the bottom. I use a goniometer to measure this. Then handlebar height for comfort and finally stem length by placing hands on the hoods and looking at elbow bend. 100 degrees is my preference on the hoods.
With this method, I seem to reproduce the hub hidden by bars when hands on the top of the bars (but there is a lot of leeway).
If it is a high quality Defy, I’d swap frames, personally. Once frame fits properly, you’ll never go back.
Oh and I spent three weeks agonizing over whether to get a M or a M/L. Including an extended test (with race) on the M that finally swayed it for me. Since it’s an SL, once the seatpost is cut, there was no returning it, either!