If you are talking about the folder names inside the Calibre library, then yes it does cut them off. Ideally you should treat the Calibre library as a "Black Box" about which you do not need to know the internal details. A limit such as this is not visible if you use Calibre to handle all interactions with its library which is the recommended way of doing things. If you export books from Calibre using the "Save To Disk" facility then this limit does not apply.
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