The latest update to the Google Photos app brings 'performance improvements' - show us an update changelog that doesn't say that. This one, however, adds a neat feature - Photos will now cache videos you watch so you can replay them later without using up your data allowance. Since these videos need to be saved somewhere, they'll eat up into your storage, but storage is cheap and data traffic isn't. Also, clearing your cache doesn't seem like that much hard work, should you need to free up space. Now, having a toggle to enable/disable the caching could have been even better, but no, not...
Source: http://www.gsmarena.com/google_photos_will_save_you_data_by_caching_videos_youve_watched-news-27092.php