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My bookmarks suddenly stopped displaying properly and I can't figure out how to fix it.

My bookmarks are organised as follows:
/Folder A
/Folder B/Subfolder X
/Folder C
A book mark
/Folder D

etc.

When I open up bookmarks (cmd-B), I used to see the bookmark structure in the main window and my groups in the left hand pane.

Now I see Folder A, Folder B, Folder C and Folder D in the left hand pane; selecting one of them shows its contents in the right hand pane. I can't get the bookmark "groups" (history, site preferences etc) to display.

The bookmark menu item works properly, so the bookmarks themselves aren't lost. That's the only way to select my "top level" bookmark.

What went wrong? I restored my Groups.plist file from my time capsule but it didn't appear to change anything.