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The local cache uses "sparse files". These files can take up a very large space, or none at all, and they'll still report the same size. This is how part of how we keep track of what chunks are used where, etc. And if you right click on the file/folder, and check properties, you'll notice that it will report the size and size on disk, and these should be very different values. In fact, the "size on disk" should be closer to the local cache size. However, the cache size isn't a hard limit for what can be stored on the disk. We grow past that in the case that the cache is filled up completely. And if the cache is 'overfilled', as it uploads the data, it will reduce the size down until it hits the specified cache size. As for the deadlock issue, we are looking into this issue, as it is definitely a serious one. However, it is a very complicated issue, so we don't have a quick fix (we want to fix it properly, rather than half-assing it).