Filtering list of items by folders

We're introducing folders into our app and I'm having a hard time figuring out the layout.

Here's what I know:

1. The items will be draggable onto the folders.
2. One item can be added into multiple folders
3. Items can be viewed one folder at a time, no multi select on folders
4. Items can be sorted by date, title
5. Items can also be filtered by status (published, unpublished, draft)

In order to cancel a folder view, I added the filter by status in the sidebar above the folders. So when you click on any of the 4 links above, it cancels the folder view.

The I realized that this was not ideal, because some users will need to see all the unpublished items from a particular folder, and my solution makes that impossible.

The other idea I had was to put the status filter inside a dropdown and place it next to the sort dropdown and have a "View all items" link in the sidebar. But then I'll have 2 "view all" links: one in the sidebar, and one as the default option of the status filter.

Any idea on how to better organize the layout in my situation? Thanks!