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It will not backup all 150 GB that is allocated if HWM is 1 GB. But you should use the compression option on the backup command anyway. However, I am not sure if the backup will have to read the entire allocated space to find out if there are any pages to backup.
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M. A. Feldman
IBM Certified DBA on DB2 for Linux, UNIX, and Windows
IBM Certified DBA on DB2 for z/OS and OS/390