Mass far from the axis matters
When the skater's arms are out, more mass is spread away from the centre, so moment of inertia is larger.
Physics Learning Tool
Move the skater's arms inward or outward and watch how moment of inertia, spin speed, and angular momentum change together.
Explore the same rotation from above and from the side. Move the arms to change the distribution of mass.
When the skater's arms are out, more mass is spread away from the centre, so moment of inertia is larger.
With little external torque, pulling arms inward lowers moment of inertia and increases angular velocity.
Curl your fingers with the rotation. Your thumb points in the angular momentum direction.