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When NTFS encounters files with long runs of zeros, the system counts how many zeroes are present in the MFT header attribute. The counter is stored instead of actual data.
Long runs of zeros are common on disks, so counting them is an easy way to compress a file.
The counting mechanism kicks in when the run of zeros consumes an entire cluster.
The resulting "sparseness" of the file is annotated in the data run that maps the clusters allocated to the file.
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