Odd Folder Creation

Question

Today, 2/16, I noticed that my inbox and "other" emails were moved to a strange folder (it had letter and numerals in the name). I did not create these folders. I promptly moved the emails back and deleted those folders. I changed my password, and initiated the double sign in. I did notice many failed attempts from all over trying to access my account, so I secured it. However, these folders appeared in 2 hours when I was not home. What would cause something like this to happen? If the sign-ins were failed attempts, what happened to create these odd folders?

I don't have a screenshot of them. But they were long names, nothing recognizable, seemed to look like an auto-generated name

Is there any explanation for this as I was very concerned.
Thank you,
Lorraine Bondi

Answer 1

This is indeed a recent issue that is actively being investigated by Microsoft. A server-side fix will likely be rolled out soon.

There is an ongoing thread about it here;
Strange folders appearing in Hotmail. - Microsoft Community