Steps to reproduce this bug:
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In Windows Explorer, under a synced folder, selectively unsync a file via the shell context menu.
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Go to Insync’s file explorer panel, the parent folder now has a checkmark on a yellow circle, as expected.
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Right click on this parent folder (but do NOT expand it to show its files (important!)), and click “sync entire folder”.
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The yellow circle will almost immediately turn green, but the file is not synced back.
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Now, expand the folder, and you see a weird scene:
Insync 1.4.9.37127, Windows 7 Pro SP1