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Understanding Albums on an iPhone
The BIGGEST thing you need to realize with albums on your Iphone is that when you add a photo to an album, it is not creating a copy of that photo. Your photo does not exist two times on your phone. It exists in your photo library, and it’s just organized in the album.
If you delete an album, or remove a photo from an album, it does NOT delete that photo. That photo still remains in your collection.