updated 11:23 am EDT, Wed March 26, 2014
Nested folders still not officially supported in iOS
A bug in iOS 7.1 lets people place folders within folders, or even hide icons, users note. To pull off the folder trick, a person has to first completely fill an iOS homescreen with apps -- including both the regular grid and the dock, which in the case of an iPad can fit up to six apps. A user must then create a new folder by dragging one app on top of another. As the folder animation starts, though, a person has to quickly drag the folder they want nested into the new one.
To make icons vanish simply requires an extra step. If the two original apps in the new folder are removed, followed by the subfolder, the latter will disappear. The apps haven't actually been deleted, but will only reappear if a device is rebooted.
Apple will presumably fix the bug in an upcoming update. The company could conceivably integrate subfolders into iOS 8, but rumors haven't hinted at the prospect.