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Control panel shows memory usage higher than my free -m. What gives?

Control panel shows the cached memory as used as well. Your free -m shows the actual result.

To get a better understanding of Linux memory usage, please refer to http://www.linuxatemyram.com/
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My VPS is using too much memory. What's wrong?

It probably isn't. You may be reading it incorrectly. Please refer to http://www.linuxatemyram.com/