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Chris demonstrates how to clean up system data on a MacOS computer for free. He explains that system data can accumulate over time and take up storage on your Mac. To clear up storage, he recommends using the "reduce clutter" feature in the storage tab. Additionally, he suggests going through individual files in the file browser tab and deleting unnecessary ones. Chris highlights that lingering system data, such as cache files from certain applications, can clog up your drive and provides tips on how to address this issue.