Why is your public_html folder in your public_ftp folder? Cause that's the problem; move it up one directory so it's next to your public_ftp folder, not inside it.
My sincere apologies. The drag and drop "how did that happen" gotcha, got me. Guilty as charged your honour. Definitely a "not enough sleep" mistake on my part, in fact a more likely "did it in my sleep" error! Thanks for the reply, D.