Microsoft's SkyDrive cloud storage service has always kept previous versions of Office documents, but other file types had no redundancy options available when using the SkyDrive Web interface. With these non-Office file types in mind, Microsoft recently added a recycle bin feature to provide restore options for all files.
To get to the recycle bin, click on the new Recycle Bin link, located at the bottom of the left pane, just above Manage storage. If you don't have the link yet, it should roll out to your account soon. Once in the recycle bin, select one or more files to recover, then click the Restore button. Your files will be restored to their original locations in your SkyDrive account.
That's it. Files in the recycle bin are kept for at least three days, but will be permanently deleted after 30 days. Also, files in the recycle bin do not count against your storage limit.