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What's inside shows up on your computer, regardless if you're the owner or recipient. Dropbox, One Drive, and others simply treat folders as folders. No other cloud storage service and sync app does things this way, as far as I know. In fewer words, local access for folders is utterly nerfed. Edit: See the "Interesting side effects" section above for more info. On the web, it's clear that they're still the owner, but locally, that doesn't matters very little because the file now belongs to another structure. It's only accessible from that dang folder shortcut. But when the changes sync locally to their computer, that file, which was on their machine, is gone, poof, deleted.
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