The SharePoint User Management Event Wizard does not allow the user to specify a nested folder structure.
A SharePoint document library is created with a nested folder structure and when the user attempts to select the nested folder structure, the wizard does not allow the user to do so. The reason was that a validation character was misinterpreted as a special character which was not allowing the multi level folder structure to be accepted.
Create a SharePoint document Library Create nested folders 2 levels deep. Site/Library/folderL1/folderL2
Use the SharePoint Management Event > Manage Permissions > SharePoint folders and try to see the permissions in the second folder (folder2)
This issue has been resolved in the latest K2 4.5 Update KB001420 (4.10060.1.1420)