Windows reporting of RAM allocation vs. use
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Solved by mariushm,
RAM is supposed to be used. If applications don't use it, Windows will use the free memory it to cache files and various things to improve your "experience" but as soon as an application requires RAM, it releases that memory and gives it to the application demanding it.
I have a game running and Firefox with lots of tabs and as you can see below, still have 4.0 GB of cached stuff and 3.8 GB of free space available if applications need it.
With the swap file available should it be needed, the total amount of "memory" available to applications is nearly 37 GB
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