I use postgres for my install and had a similar thing happen to me. I tried moving an org credential to a folder, which moved the folder to the org, and kicked all other credentials to “no folder”.
Thanks for confirming with your DB. That saves me sweating whether I should rebuild on PG at least, and also makes me feel better that it’s a folder bug and not generalized database corruption.
Having finished the heavy organizing, my rate of big org transfers has slowed and I haven’t reproduced again yet. Hopefully this will be uncommon enough to be a non-issue. Thanks again for the info.