Steps to Reproduce:
1) Have enough hosts to cause the hosts pane to get a scrollbar
2) Create a new folder (it appears at the top of the list)
3) Scroll to the bottom of your list
4) Try to drag the last entry all the way to the top to place it in the new folder.
Unable to scroll up window pane.
When you drag a host to the top of the pane, it should scroll up so that you can move the host to the top.