RestorePreviousVersionAction restore only child items but not folders and their child nodes.

Reproduce in contact app:
Create structure as

rootFolder [type mgnl:folder]
subFolder [type mgnl:folder]
contactInSubFolder [type mgnl:contact]
contactInRootFolder [type mgnl:contact]

Then select rootFolder and use Delete folder action. Confirm warning about "the node and its sub nodes will be marked for deletion".

All elements from the tree are mark as deleted.

Now select the RootFolder and use 'restore previous version' action.
RootFolder and contactInRootFolder will be correctly restored, but subFolder and contactInSubFolder not.

Check fix done for MAGNOLIA-5337