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REST "Create Folder" Duplicate folder error despite non duplicate

Question asked by Takehiro Monday on Apr 5, 2015
According to API document, 
"Name has to be unique under the parent folder. " 
http://developers.marketo.com/documentation/asset-api/create-folder/
But This API returns duplicate error when the folder name has not be unique across all folders.
Is this a marketo defect?

For Example
MyFolder -+-Test1
               +-Test2
When I make Test2 under Test1    ==> Dupulicate Error
MyFolder -+-Test1-+-Test2
               +-Test2
Response is
{"requestId":"6b4e#14c8ccf57b7","success":false,"errors":[{"code":"709","message":"Test2 Duplicate folder name"}]}

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