This is caused by a lack of sort order on the folders, effectively making them all have the same sort order.

To correct this and add sort orders to the folders:
  1. Go to Core
  2. Hover over People Finder > Search for and Select the preferred User
  3. Select the Files & Forms tab
  4. Edit the preferred folder
  5. Insert a Number in front of the title or re-title the folder with a unique name to help sort the folders
  6. Select Save