FYI, I've seen this bug before: I don't really remember the specifics too clearly, but something (I think it was VLC in my case) had decided to associate itself with folders.
I fixed it by editing ~/.config/mimeapps.list and changing the inode/directory= entry to caja-folder-handler.desktop
Removing the PPA has obviously fixed your scenario, but the method I mentioned should let you reinstall it if you want without it borking your shorcut, hopefully. 