The file is Base64-encoded and embedded as a payload within the URL via the URI fragment (delineated by the # character) which means the file/payload shouldn't get sent to the server.
Built mainly for fun, but I have found limited use cases for it (eg. I use a shared mouse/keyboard + clipboard across multiple machines, so use this to transfer files between them; I also have found it useful for file transfers to mobiles - via Edge's URL to QR code feature).
It's really only suitable for small file transfers as you might imagine!
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