There are two basic sets of folder navigation links. One is the Recent Spaces list on the left side. The other is what I assume is the "path" to the node in question, shown above the menu bar panel.
The path seems to be generated using server side navigation state. That allows it to get confused when the user uses the back button on his/her browser. For example, navigate to /FolderA/FolderB, click the back button, navigate to /FolderA/FolderC, and you will see the path says /FolderA/FolderB/FolderC.
Instead, can the path to the object be built based on its parent hierarchy, so that it is always correct?
