On Windows system, this is something that became obvious pretty quickly when running the tests, since the test used files such as "a1", "a2", "b1" etc. and tried putting it into folders "A1" and so on.
Even though Windows case-insensitivity is just a bit more obvious, it's still actually a problem on other platforms as well. For instance, if we have a file named "A1" and we try to create the directory "A1", we'll fail.
I don't have an immediately good idea to solve this. We need to create some guaranteed-to-not-be-used folder name and then rename it when we're done.
Just to be clear - this is really an edge case, but it wouldn't hurt to have a fix for it.