120GB Macbook Pro that is storing 238.74GB of "Applications"

Okay, can someone please explain to me what is taking place here? My 120GB MacBook Pro seems have 238.74GB of Applications stored on it. I'm not sure what to do about this and I can't even begin to fathom how to fix this issue. I am utterly confused. I had never seen this problem before I downloaded a game from Steam that took up, pretty much, the rest of my storage. Well, almost all of it, excluding 3 or 4 GB. But yeah, Anyone else had this issue? My mac tells me that I have some space free, but i can't stand looking at the 238GB being inside of a 120GB hard drive. What do i do?

Also, my mac tells me that i have 121 GB of flash storage... Just a lot of odd stuff going on right now.