Invalid folder highlighted when going up in case-sensitive FS

When accessing a remote server with SFTP via SSH and traversing directories one can go to a directory with two directories with same name but different case (Linux server).
Example:
/etc/ums
/etc/UMS
Once user enters the /etc/ums directory and browses up (get's back from it to /etc) invalid folder highlights as the last visited "/etc/UMS" instead of "/etc/ums" what brings visually some confusion.
History records visited directories correctly in such case, though.

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