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Am I missing something basic or is this a bug ?
It's not beyond the realms of possibility. Allocation block size is 4k. If every file was 5k, then they'd each take up 8k on disk, which gives 218MB.
If all the files are below the allocation block size of the disk by a lot, then that could make perfect sense.
27,254 items all below an allocation block size of 8,192 bytes would lead to an "on disk" size of about 213 MB.