As the memory is usually very limited, it's wise to choose the OS with very small footprint.
If you searh, there are mini mini Linux distributions that fit on a floppy, or small USB device, and they can be a candidate, too.
But you should remember that you are going to use these OS on the VPS and not all guest OS can be suitable for the given VPS technologies.
So, you may want to check about these points with the provider, or the people who created these mini distribution.
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