Thousands of small files, Size on Disk larger than Size

I am having an issue using the MyCloud as an FTP server for my security cameras which upload JPEG captures very often. It seems the file system of the mycloud is exFAT which is very bad with small files, is there any way to change the file system on MyCloud? I don’t care if it voids my warranty because the device is useless without a smaller cluster size.

File system of the My Cloud (user data partition) is EXT4

Is there any other reason that 130mb of files would take up almost 8GB under “size on disk”?

Forget for a moment what Windows says the Size on Disk is.

What does the command line (via SSH say)?

cd to the folder in question, then use the command

du --max-depth 0 -b