Any files uploaded to the file cabinet when in a subgroup, are only visible by other subgroup members.
When you look at the Groupsite file cabinet, you will see all uploaded group files as well as those subgroup files for the subgroups to which you belong. The subgroup files will appear in their own separate folder for each subgroup. If you do not belong to the subgroup, you will not see the files.
Here's a quick video that shows you how:
How To Use The File Cabinet in a Subgroup in a Groupsite from Shaun Callahan on Vimeo.
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