Your Mac (OS X) does not restrict the amount of space anywhere. If you used Paragon NTFS to format the 32 GB flash drive to NTFS, it should have worked with no restrictions.
If you're asking why you needed Paragon NTFS to format that flash drive to NTFS, it's because NTFS is a Windows native file system, not Mac OS X. You could have also used a Windows machine to format that same 32 GB flash drive. In the same way, Windows can not format a drive to HFS+ which is the Mac native file system without an addition driver being loaded in Windows.
I hope you understand a bit better now. If you have any further questions, just ask.