FWIW, some of the medicore to bad Diablo clones I've played or tried (Space Hack and Restricted area come to mind) had a simple "rearrange inventory" button that would let you quickly rearrange the items in inventory (I never figured out if there was any rhyme or reason or if it just randomly rearranged stuff). Usually a couple button presses would get stuff more neatly arranged leaving more room.
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