I am using Ant and the MetaData API to retireve reports from a sandbox and then deploy them to another org.  LIghning now supports nested folders for reports and dashboards, Ant can retireve them and they are created in a hierarchical folder structure as you would expect.  However, I am finding that I cannot deploy them to another environment.  I get this error:
-- Error: An object [...]  of type Report was named in package.xml, but was not found in zipped directory
The file is there though.

Anyone else experiencing this and know of a work around.  I want to deploy the reports in nested folders, there would be far too many for me to move after the deployment and there is no way to move multiple reports or entire folders into another folder.

Thanks!