What does arg "wrap_with_directory" from add function do?

There’s an argument called wrap_with_directory within the add function from the ipfsapi (here in code). The description says:

wrap_with_directory : bool
            Wrap files with a directory object to preserve their filename
            (Default: ``False``)

I’m not exactly sure what this means.
My guess: Does it place files into a container directory before uploading?
Whatever the function is, what kind of use cases are there?

Yes. This is essentially what it does.

The use case is if you want to preserve the filenames of individual files you’re adding to IPFS that aren’t already in a directory.

As opposed to uploading files directly without wrapping into a folder, because that file would just get addressed by its hash on IPFS?

I’m presuming it goes like this:

[->]: Upload onto IPFS

wrap_with_directory: false
  file.txt -> <IPFS hash>
wrap_with_directory: true
  foldername/file.txt -> <IPFS hash>/file.txt

That’s correct!

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