I can't explain why it is that big, but I maybe this solution to control how big it should be displayed would help you.
If you switch to the text view (at the bottom of the text area), you can include an image with a syntax like this. You can play around with the width number according to your preference.
!filename.jpg|width=400!
This post in the community talks about these options.
Cheers, Matthias.
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