A system and method for managing a reduction in capacity of a memory sub-system. An example method involving a host system: determining, by a host system, that a failure affects a storage capacity of a memory sub-system, wherein the memory sub-system comprises stored data of a storage structure; instructing, by the host system, the memory sub-system to operate at a reduced capacity and to retain the stored data of the storage structure; receiving, by the host system, a set of storage units of the memory sub-system that are affected by the failure; and recovering, by the host system, data that was in the set of storage units affected by the failure.