Ok I have read others having a buggy issue with photostream when making sub folders. I would delete it and go to settings and toggle photostream off then on go to a wifi source and it should work.
My partner and I joined the Apple brigade last Autumn. She takes hundreds of pictures on her iPhone and I foolishly assumed they were all finding their way to my Mac via Photostream - I never checked until this morning when we both knew she had taken numerous photos yesterday and had looked at them on the phone on the way home. So I immediately realised around 20 images were missing when I checked Photostream on my Mac so I attached the phone to the Mac and was horrified to discover 157 photos out of 685 taken over the past 4 months had never found their way to Photostream!! That is pretty shocking especially as we deleted hundreds of older photos from pre February without ever checking!! What buggy bit of software drives this - must admit as newcomers to the Apple stable I think the hype about the products and software is overblown.
This goes to show that you ALWAYS have a backup of important things like photos.