Characters folder not working

For some reason whenever I create a new character, it doesn't go into the "Characters" folder like they used to. Any help? It started when I made a folder just to test out something. I like to keep things organised and I will probably end up having about 50+ side characters. Anything would be nice!

Just to catch the most common error: are you grabbing the item from the right place--the handle, not the name? From the wiki : Hover your mouse over the item you wish to move. Grab the "handle" that shows up along the left-side of the item name. Drag the item just below the folder that you want to move it to and then move the file to the right before dropping it in the folder.

Ben, the characters and handouts folders are simply the default folders. Once you make additional folders, characters stop going into the characters folder automatically. You can however get around this by simply right clicking on the folder and selecting "create character" from the drop down. This will create a character in the folder you right-clicked on.

Well, I'm gobsmacked. I did not know that.