Empty Folder structure delete does not version

[kjhmmc]

I'm not sure what is going on exactly. In my setup, the folders from the source C: drive are mirrored correctly on the NAS backup location. I have replace versioning enabled. I noticed that when I delete an empty folder on the C: drive the mirrored location does not place the empty folder into the designated recycle folder. The log files says it is moving the deleted folder to the designated recycled folder but it is not there. Is this by design ?