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DoctorOhh has it right. If you turn off using subdirs then news will not be put in a folder. Of course, neither will any other book, should you be using subfolders for standard format files.
Looking at calibre's code, of the USB storage-option devices only the Nook devices do not put news in a sub-folder by default. Of course, if the device does not permit subfolders then that overrides the news settings.
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