A Microsoft file hosting and synchronization service.
Good news, indeed!
To save hard disk space while keeping files in the cloud, you should use the Files On-Demand feature in OneDrive.
https://www.youtube.com/watch?v=UzIA9uykIhE&t=43s
It's also possible to move the entire OneDrive folder to a larger drive. But you must do it by the book. Wait until OneDrive is fixed before attempting that.
You don't need to move the existing OneDrive folder. If you unlink OneDrive from the existing folder and re-link it to a new empty folder named "OneDrive," all your files will download to that new folder.