Stupid question, but this is bugging me.

[Herpdaderp]

I recently had to reinstall OSX and my settings were the defaults. Well, I did my original install so long ago I don't exactly remember how to change it.

How do I get rid of the space between folders and make it so they fill the empty space?

 

[GGJstudios]

Right-click... clean up.

 

[redgaz26]

when in your finder window right click on the mouse or in my case 2 finger tap on the track pad, this will bring up the menu bar ive posted, then arrange as you like

arrange or clean up

 

[Gregg2]

The image you show must be of a window set to Arrange By None. So, just drag the icons around. The other suggestions make them align with each other, which I prefer, but some people like the freedom of putting things wherever they want, quite literally. I tend to use Snap to Grid - the best of both world's.