Some searching on the internet leads me to believe that it has to do with NTFS but no way to move it somewhere else. Would booting from a live CD and shrinking the partition from there help?
There's about 200GB free on the partition and it has bitlocker enabled (but it's unlocked). I've already tried turning off the page file/kernel logs.
Edit: This isnt a problem with the Mft file, the problem is that it is in the way and there seems to be no way to move it.