If the cursor is at any buffer position inside a fold, backspace deletes the folded text

src/app/display-buffer.coffee

@@ -129,6 +129,13 @@ class DisplayBuffer
   largestFoldStartingAtScreenRow: (screenRow) ->
     @largestFoldStartingAtBufferRow(@bufferRowForScreenRow(screenRow))
 
+  largestFoldContainingBufferRow: (bufferRow) ->
+    largestFold = null
+    for currentBufferRow in [bufferRow..0]
+      if fold = @largestFoldStartingAtBufferRow(currentBufferRow)
+        largestFold = fold if fold.endRow >= bufferRow
+    largestFold
+
   screenLineRangeForBufferRange: (bufferRange) ->
     @expandScreenRangeToLineEnds(
       @lineMap.screenRangeForBufferRange(

src/app/edit-session.coffee

@@ -207,6 +207,9 @@ class EditSession
   largestFoldStartingAtBufferRow: (bufferRow) ->
     @displayBuffer.largestFoldStartingAtBufferRow(bufferRow)
 
+  largestFoldContainingBufferRow: (bufferRow) ->
+    @displayBuffer.largestFoldContainingBufferRow(bufferRow)
+
   largestFoldStartingAtScreenRow: (screenRow) ->
     @displayBuffer.largestFoldStartingAtScreenRow(screenRow)
 

src/app/selection.coffee

@@ -145,21 +145,23 @@ class Selection
     @deleteSelectedText()
 
   delete: ->
+    deleteNewlinesAfterFolds = true
     if @isEmpty()
       if @cursor.isAtEndOfLine() and fold = @editSession.largestFoldStartingAtScreenRow(@cursor.getCurrentScreenRow() + 1)
         @selectToBufferPosition(fold.getBufferRange().end)
+        deleteNewlinesAfterFolds = false
       else
         @selectRight()
-    @deleteSelectedText()
+    @deleteSelectedText({ deleteNewlinesAfterFolds })
 
   deleteToEndOfWord: ->
     @selectToEndOfWord() if @isEmpty()
     @deleteSelectedText()
 
-  deleteSelectedText: ->
+  deleteSelectedText: (options = {}) ->
     bufferRange = @getBufferRange()
-    if fold = @editSession.largestFoldStartingAtBufferRow(bufferRange.end.row)
-      bufferRange = bufferRange.union(fold.getBufferRange(includeNewline: true))
+    if fold = @editSession.largestFoldContainingBufferRow(bufferRange.end.row)
+      bufferRange = bufferRange.union(fold.getBufferRange(includeNewline: options.deleteNewlinesAfterFolds ? true))
 
     @editSession.buffer.delete(bufferRange) unless bufferRange.isEmpty()
     if @cursor