✓ gnarf@air:~$ cd /tmp
✓ gnarf@air:tmp$ mkdir tmpproj
✓ gnarf@air:tmp$ cd tmpproj/
✓ gnarf@air:tmpproj$ mkdir test4
✓ gnarf@air:tmpproj$ ln -s test4 test1
✓ gnarf@air:tmpproj$ ls -al
total 8
drwxr-xr-x 4 gnarf wheel 136 Jan 20 11:11 .
drwxrwxrwt 14 root wheel 476 Jan 20 11:11 ..
lrwxr-xr-x 1 gnarf wheel 5 Jan 20 11:11 test1 -> test4
drwxr-xr-x 2 gnarf wheel 68 Jan 20 11:11 test4
✓ gnarf@air:tmpproj$ touch test4/test.txt
✓ gnarf@air:tmpproj$ subl .
Wat? The symlink folds out but not the real folder?!
✓ gnarf@air:tmpproj$ rm test1
✓ gnarf@air:tmpproj$ ln -s test4 test5
Some other variants...
✓ gnarf@air:tmpproj$ rm test5
✓ gnarf@air:tmpproj$ mkdir a
✓ gnarf@air:tmpproj$ mkdir b
✓ gnarf@air:tmpproj$ mv test4 b
✓ gnarf@air:tmpproj$ cd a
✓ gnarf@air:a$ ln -s ../b/test4/ test4
I would say all of these are wrong - even the symlinks should fold out with the contents