What is correct user expectation regarding drag and move?

I have the following note taking app - https://wenote.jstock.co

I have some question, regarding user expectation regarding drag and move.

Say, you have the following card position.

[1] [2]
[3] [4]

when you move card 1 to card 4 position

enter image description here

Should they become (Card 1 and card 4 are being swapped. Only position of card 1 and card 4 affected.)

[4] [2]
[3] [1]

enter image description here

Or, the entire cards position are being shuffled (The entire list of cards are being shifted forward, to give space to the moved card. All cards position are affected.)

[2] [3]
[4] [1]

enter image description here

So, I'm some how confused here. What is the correct behavior when coming to drag n move for the above case?

  1. Card 1 and card 4 are being swapped. Only position of card 1 and card 4 affected.
  2. The entire list of cards are being shifted forward, to give space to the moved card. All cards position are affected.

For me, the 1st approach has a more "Direct intuitive". But, I notice that some popular note taking app like Google Keep, Zoho Notebook are using 2nd approach.

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