The way cosmetic items are being stored in the backend has been re-written for Be’lakor to make space in the inventory, but at this point it only applies to new accounts. This is because our Backend Engineers want to monitor how it works with new accounts - and iron out any potential issues - before committing the change across existing accounts. So this change will come, and space will be made in your inventories, once our Backend Engineers are 100% happy with it.