How exactly does "manual cache" of data work?

Actually, it was answered by BubbaBlitz…

If you create the cache while zoomed out, you can cover a really large area with very little space requirement. As you zoom in and get to the higher LOD in the cache map screen, it will increase in size. There are 3 levels of cache detail. WHen you’re on the highest level, your cache even for a small-ish area could potentially be 10s of gigabytes.

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