Fix unlimited quotas on a cPanel OpenVZ Virtuozzo VPS
cPanel on OpenVZ Virtuozzo servers needs second level quotas enabled for users to set a quota limit. If second-level quotas are not enabled, then users will see an unlimited quotas cPanel and will able to use an unlimited amount of space.
But to fix this you need access to the host node the server is running on. You cannot fix unlimited quotas if you only have root access to the cPanel VPS server. You should contact your virtual server provider for them to fix this for you.
First, stop the container, replace CTID with the ID of the container
vzctl stop CTID
Enable Second Level Quotas
Next, enable second-level quotas, but don’t worry about the value here, vzquota will calculate the correct quota limit based on the space assigned to the virtual machine. Replace VMID with the ID of the container
vzctl set CTID --quotaugidlimit 500 --save
Next, start the virtual server again, replacing CTID with the container ID
vzctl start VMID

Once the container is mounted enter the container and issue the fix scripts command the server will generate the quotas and when you now look at accounts they will have quotas enabled.
vzctl enter CTID
Then issue the quotas command
/scripts/fixquotas
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