Reported by @mark-up (Unfuddle)
See the attached screenshot.
I archived a single hide.js file, then downloaded and unzipped the archive to see the contents. Inside I found the entire directory structure.
This is not correct behavior.
It should only archive files and folders from the current directory and downwards.

Reference:
https://ninjagroup.unfuddle.com/a#/projects/38481/tickets/by_number/48?cycle=true