[CentOS] Moving folder just vanished??

Hi all,

Can anyone explain or give an clues as to what just happened?

I'm running CentOS 5.2 as a desktop with Gnome. Fully up to date, etc.

I was dragging a folder of image (.jpg) files to another folder on the 
same filesystem (LVM ext3) with the mouse and as I dropped the folder 
into the new folder - poof! - it disappeared like a puff of smoke.

I've searched everywhere for the files/and or folder and they are 
totally gone.

I must also point out that the filesystem was an encrypted one using 
fuse-encfs.

In all my years of using Linux, I've never seen this happen before.

Sadly I have no backup as I'd just copied them from an SD card to the 
HDD then formated the card - maybe I was too quick doing that step.

Thanks