Preparation:
0) in windows have FAT32 file system named V:
1) Create the following directory: V:\XXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXX\XXXXXXXXXXXXXXXXXXXXXXXXXXX\
2) Create the following directory: V:\XXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXX\
3) create in dir 2 a file named XXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXX.JPG
4) copy dir 2 into dir 1
5) Open the file created in step 4 (deep path) in XnView. Works fine. Press CTRL+B to show all files in browser mode. XnView crashes.

6) Open the file created in step 3 (not deep path) in XnView. Press ALT+M and move picture into dir created in step 4 (deep path). Nothing happens

I stepped into that bug by moving several dirs into each other that contained status information like "todo panoramas, geo tagging and selection" in its name.