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Outlook 2007 Infinite Folder Nesting

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http://serverfault.com – There's a user on our exchange who moved a subfolder of his inbox into a subfolder beneath that, and now an infinitely nested folder loop has been created (see screenshot). This is prevalent on both Outlook 2007 and on OWA so it appears to be an issue server side, however I can't think what will have caused it let alone how to resolve the issue. I've tried to create a copy of the folders and then move the copy back to a copy of the original folder structure, however when I've done this, the 2 looping folders are subsequently empty (When originally, they were not). As this issue is also vi (HowTos)