Fanolian wrote:What is C states and why does it make such a difference in my case? What are the side effects if I disable C states?
C-states are power states, and I wouldn't recommend disabling them all without good reason.
Some of the lower ones like C1/C1E/C2 are often required for TurboBoost and/or SpeedStep to function as expected, both features which you'd usually want to remain functional unless overclocking.
The higher ones like C3/C6/C7 put CPU cores in various levels of reduced functionality deep sleep states (partial core shutdowns), with very very low power draw. Though if you don't care about saving an extra ~1-3W of power draw at idle, these can be safely disabled. It's not unknown for deep sleep states to have an impact on I/O or subsystem performance when active, but it's usually not very significant. It also seems that some older and lower end PSUs don't even support power draws low enough to support the Haswell C6/C7 C-states properly.