If I create the pages w/haystack and w/haystack/needle, both show up in my top level hierarchy as expected, and viewing w/haystack shows needle in it's hierarchy. Then I move w/haystack to w/haybale, but it does not move needle with it. Now when I go to the hierarchy at w/ I see haybale only, and the hierarchy at w/haybale does not show needle either. Fortunately the direct URL to needle still works.
If I go to w/haystack it tells me the page has moved, and does show needle in it's hierarchy. If I edit and save this page (creating a new w/haystack) I can again see haystack and needle in the top-level hierarchy.
I do not think the descendants should be orphaned in the hierarchy when their ancestor is moved. Maybe this means moving the descendants automatically at the same time, or maybe auto-create a placeholder document to replace the moved document, or some other solution.
See also PHI987.