I appreciate that the negative space is that amount specifically so it can fit the "Show more" option's fields, but given how they're, well, not displayed by default, whereas the folders are... feels a little odd to not make use of that space in what is presumably the majority of cases (otherwise "Show less" would be the default, right?)
If it's just switching between the two sizes for the folder view, that doesn't feel too taxing. One view that truncates would probably be better still, so there's no need for scrolling the entire screen - which clearly would be bad UX.