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In this video tutorial, the presenter demonstrates how to highly compress a large number of files to half of their original size using WinRAR. They use three Eclipse workspace folders with 42,000 files occupying 1.15 GB as an example. The process involves selecting the folders, right-clicking to add to archive, choosing .rar as the archive format, creating a solid archive, and adjusting compression settings for text documents. This method will be elaborated on in future videos, including using the zip format for compression.