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Gobbling data on Wifi

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I have an iPhone 4s running on Verizon 3G and have recently been hit with low storage warnings consistently. I can't take photos, download apps, etc, and I barely even use my phone! I've noticed that when I turn off the wifi, over 50 MB of available storage suddenly appears. This is ridiculous! How can wifi possibly be using so much storage? Unacceptable!

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