Core FTP

I found an issue where a file can be copied into a folder that has no permissions

I have a few folders setup like this
E:\site - Full permissions applicable to subfolders (this is the site root)
E:\site\test - No permissions - with inherit turned on (without inherit it errors being unable to read)
E:\site\test2 No permissions specified all are inherited.
I have a file in E:\site called testfile.txt

I can not read the test directory or create a file or folder there. Nor can I overwrite a file or folder in this directory. This is expected.

What I can do is copy a file or folder into the test folder and it will copy it there. This is unexpected.

This is not showing up in the logs either
[20091202 15:19:15] [192.168.1.6] connecting
[20091202 15:19:15] [192.168.1.6] connected
[20091202 15:19:16] [192.168.1.6] user 'test' sent
[20091202 15:19:16] [192.168.1.6] USER-PASS (xxxx) success
[20091202 15:19:16] [192.168.1.6] LIST success - /
[20091202 15:19:17] [192.168.1.6] LIST denied - /test
[20091202 15:19:34] [192.168.1.6] LIST denied - /test
[20091202 15:19:38] [192.168.1.6] LIST success - /
[20091202 15:19:45] [192.168.1.6] LIST success - /
[20091202 15:20:48] [192.168.1.6] disconnected (test)

Does anyone have an idea as to why this is working?
Thanks