We also have this problem after importing our password database with around 400 collections. Many of the collection names are too long for one line and break into a second (or even third) line which makes it very messy and difficult to read.
The problem could be solved or defused a lot with a very simple adjustment of the max-width value in the .vault.groupings css class. Currently that is set to 250px. Setting that to 500 or 600px would help a lot for us. And it wouldn’t hurt people with shorter folder names since it’s only a max-width so it gets smaller with shorter names.