Folders in iOS are limited, you’re allowed to put 12 icons of your apps and you can’t add more. iOS Folders were introduced in back 2010 with iOS 4 but, people who like to install dozens of apps, the feature is quite limited in functionality: you are now allowed to place 12 apps inside each folder and you can’t place a folder within folder.
When iOS 5 was released few weeks ago, there was trick allowing you to put the NewStand icon into a folder but it will crashes when you try to open it. Several other tweaks were released. To get enhanced folders, you have no choice but to jailbreak your iOS device and install folder-enhancing tweaks.
Is there any Trick allowing you to put all your apps in a single folder? yes, the same trick is used here in the same way, you can hide other folders inside of a folder as well. You would just drag and drop an app onto another app to create a folder, then simply put the folder you want into it right before the folder appears on your screen, then drop it inside when you try the other folder inside the main folder, your springboard will crash. This is surely a bug in iOS 5 and may be Apple would fix it in the final iOS 5.0.1 release:
It is based on the same flaw in iOS 5 which was used to place the annoying Newsstand app icon – which is essentially a folder itself – inside a folder.
It’s simple: drag an app icon – any app icon – on another app icon to create folder A, grab folder B which you want to place inside folder A and place it right beside folder A before dragging folder B on top of it to create a folder within the folder. This method comes from Appadvice in the form of a post in which they discuss the flaw and how to exploit to put a folder within a folder.
Actually there are other Cydia Tweaks that makes yu easy to put Folders within one folder or all of the Apps in One folder on iOS 5 without jailbreaking. Install a ttweak like Infinifolders or FolderEnhances so that you can put apps inside a folder and even put folders inside folders inside folders, if you do decide to jailbreak your iOS 5 device.