The bounding box is bigger then the actual text/object:

Ah, I see, Haziq.

It looks as if it has accidentally been applied on top of (the boundary of) an existing path thereby becoming Area Type (to fit/fill that path).

I believe you may have then started over and creating a new Type instance as just independent Type, sometimes referred to as Point Type.

If you still have the original instance with the big box, you can go on typing (with the Type Tool) and see what happens with the Box/text: if the box retains its size and the text breaks to a new line at the end/boudary, that is Area Type.

By the way, when you delete an Area Type, the original path is also deleted; so you may have one path less than you had initially, if you deleted the Type.