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Giving or receiving a hug in which a folder is present. It usually acts as an accidental barrier, creating a rather awkward and possibly a painful hug.
Walking from class to class in school with your arms full of books. "Here, give us a hug, will ya?" You are in a hurry so you give them a quick hug without putting your books or "folder" down. This is known as a "Folder hug"
by Luscious~Cupcake~Princess November 19, 2011