I've imported some OSM data into a 3D application, but the coordinates seem to be slightly distorted in the longitude axis compared to the map rendering on the OSM website.
I've "translated" the Latitude and Longitude values into X/Z coordinates as is. Is there some special value that I need to multiply with the longitude value to get rid of the stretch?
You didn't mention how you "translated" lat/lon into x/y but I guess you are just using a different projection.
Raw OSM data is projected in EPSG:4326 aka WGS84. OSM's slippy map uses EPSG:3857 aka Web Mercator projection. The slippy map tilenames wiki page provides some additional information.