Mac storage full during upload to iCloud Photo Library
MacBook Air (13-inch, Mid 2013)
1.3 GHz Intel Core i5
4 GB 1600 MHz DDR3
Intel HD Graphics 5000 1536 MB
OS X 10.10.3
I'm uploading my Photos Library to the iCloud Photo Library because I don't have enough space left in my Mac (around 7 GB left).
When I started uploading, it went down to 3 GB, and now stopped uploading because Photos is telling me that "Your Mac Storage is full. This Mac is no longer updating because there is not enough space to store optimized versions of your photos and videos."
I don't understand why it's taking up space when it's supposed to minimize space taken by my library.
I have upgraded my iCloud Storage to 200GB, so there should be no problem with that (iPhoto Library is only ~120GB)
Would appreciate any help!
MacBook Air (13-inch Mid 2013), OS X Yosemite (10.10.3)