Can't move emails to subfolders

Can't move emails to subfolders

When I create a subfolder within mail.zoho.com it shows up in my apple mail.  

When I move an email to that subfolder, it's not showing up in the online version of mail.  Only in the subfolder on apple mail.  

Then it creates a new folder 

ex. 
One
  • Two

then it creates a top level folder that looks like this.  

One.Two

---

I then get an error on Mail, when I click on the subfolder that says, 

" The operation couldn’t be completed. (MCMailErrorDomain error 1030.)"
" The name “One.Two” can’t be used. Try using a name with no punctuation marks.


---

Any ideas how to fix this? 

Thanks.