New Finder window opens maximized every time

For some reason, now every time I start Finder or ask for a new window, it occupies my entire screen (note this is not full screen mode, it is just normal screen mode but the Finder is resized maximally to fit the entire visible area, except the bar at the top).

I tried resizing this Finder window and closing, then restarting but end up getting a new Finder window that is resized occupying my entire workspace.

Any idea how to troubleshoot this?

Running Yosemite latest on MBP retina 13.