Desired Output

var obj = {
  values: null,
  children: {
    childA: {
      values: [A,B],
      children: {
        subA: {
          values: [C],
          children: null
        }
      }
    },
    childB : {
      values: null;
      children: {
        subB: {
        values: null,
        children: {
          subC: {
          values: [C],
          children: null
          }
        }
      }
    }
  }
}

Input

"childA/A.txt"
"childA/B.txt"
"childA/subA/C.txt"

"childB/subB/subC/hello.txt"

//The .txt ending signals that it is a value, not a child of the parent

var scaffoldPath = function (path, initial) {
  var blankObject = {
    values: null,
    children: null
  };

  initial || (initial = JSON.parse(JSON.stringify(blankObject)));

  var finish = function (val, ref) {
    ref.values && ref.values.push(val) || (ref.values = [val]);
  };

  var parts = path.split('/');
  var val = parts.pop().replace(/\.txt$/, '');

  if (parts.length === 0) {
    finish(val, initial);
  }
  else {
    var ref = parts.reduce(function(accum, part, i) {
      accum.children || (accum.children = {});
      if (typeof accum.children[part] === 'undefined') {
        accum.children[part] = JSON.parse(JSON.stringify(blankObject));
      }
      return accum.children[part];
    }, initial);
    finish(val, ref);
  }
  return initial;
};

var out = scaffoldPath("childA/A.txt");
out = scaffoldPath("childA/B.txt", out);
...