Nested categories lost in Admin.

Hello,

I have noticed that when editing a post in the admin interface, if you have selected a child category for the post, the nesting of the category is lost, and the child is placed on the top level. Not sure if this is a bug or a feature, but when you have several levels of category children and parents, and suddenly the order and hierarchy changes, it is very confusing to the end user.

Example:
I create a post, and put it in a category called “Trout” under the parent “Fishing”. Only the child category is selected. If I save, close, and then re-open the post, Trout will now be displayed as one of the selected categories, but is displayed as a TOP LEVEL category, not a sub-category.

Has anyone else run into this problem? Is it a bug? Is there a fix?

Thanks.