Hi
First of all pls read resources recommended by Scott
2nd You need to decide whether you are thinking about host evacuation (DRS event really) or host failure (HA event)
3rd there a lots of options that can decide about outcomes
Few remarks
Considering traditional scenario with no admission control and no reservation
In case of HA due to the Host A failure - big VM will be powered on at the first available host (B or C), and then DRS will start to move small VMs to the other host
Considering non traditional scenario with reservation
HA won't be able to power on big VM at the first attempt, but will notify DRS about that.
DRS in turn will attempt to make enough room by making the migrations (like from B to C)
HA makes regular checks and makes several attempts to power on VMs from failed hosts.
AFAIR last HA attempt is made like 30 min after failure in order to allow DPM to power on suspended hosts from stand by.
Sooner or later your hosts will have enough room to fit this big VM and power it on.
If you use reservation consider enabling admission control based on resource percentage.
It will prevent you from shooting yourself in the foot