LAN traffic for file transfer being sent through hamachi as well

I just noticed today that whenever I transfer files over my LAN, using local IP addresses (not hamachi's addresses), the transfer is extremely slow (I have a gigabit network). 

However, when I turn hamachi off, the transfers are literarily 20 times faster!
I also noticed that the LAN traffic seems to be router over the hamachi tunnel adapter. 
I have attached pictures. 
Transfer of files are to a local ip address, ie \\192.168.x.x
With hamachi off, I get up to 865 Mbps. 
With hamachi on, i only get 46.9 Mbps, also, the traffic shows up in Hamachi's adapter

Please help

Thanks