Stacked folding - content does not fold into the heading

[tjhayes]

I am having trouble getting Stacked Folding to work correctly.

Here is a sample doc:

## Heading 1
This is the content for my first heading.
 
## Heading 2
This is the content for my second heading.

When I fold it, this is what I get. Notice the content under each heading appears on its own line:

## Heading 1
                       [3 lines]---------------------------
## Heading 2
                       [3 lines]---------------------------

But, this is what I want (and what Masukomi's readme says the stacked folds should look like):

## Heading 1                   [3 lines]---------------------------
## Heading 2                   [3 lines]---------------------------

How can I get my stacked folds to look like this?