This is inconsistent sometimes it works sometimes it doesnt.
I tried it once ona first level item and it worked.
Tried it again on a second level item and it didnt work.
Related When dragging a link to another item from another pane and dropping it (by pressing Ctrl Alt) ontop of a parent link without children, the pane doesn't refresh showing the new child. You have to manually refresh the pane (by collapsing and rexpanding) to get it to show the child link just created.