A new documentation is available for Squash TM 2.0 and later versions, check it here
On a given synchronization, it represents the entry point for JIRA tickets to Squash TM. It is created during the first update. As long as the tickets remain in the sub-tree of this target directory, the plug-in is free to move them if necessary ( see Synchronization ofAgile Scrumboards ).
But if the user moves a ticket out of the original target directory sub-tree, the plug-in will never move this ticket again. However, it will carry on updating the attributes of the ticket from JIRA.
If a synchronization fails, the target directory of this synchronization will be displayed in red in the tree view, so as to signal to the user that the communication with JIRA was interrupted. Once the communication is working again, the plug-in will update again the whole of this synchronization, and the directory will look as usual again.
The directory may be moved freely within the same Squash TM project after its creation. Changing projects would result in the conversion of this directory and its whole content into native items.
Consequently, it is absolutely not recommended to move the target directory of a synchronization from one project to another as long as this synchronization has not been deleted ( which means all of its items were transformed into Squash TM native items ).
If the target directory is deleted, the plug-in will try to recreate it at the place that was setup during synchronization. If this process fails, the tickets will never be updated again.
Consequently, it is absolutely not recommended to delete the target directory of a synchronization as long as this synchronization has not been deleted ( which means all of its items were transformed into Squash TM native items ).