I have included steps below to reproduce the problem.

I will note that if you issue the "clear" command after changing the column width of your xterm session the issue does not seem to appear.

This problem appears with ls from coreutils v8.21 (ubuntu) and 8.12.197-032bb (debian).

I was using GNOME Terminal v3.6.2 and XTerm v297 on Ubuntu 14.04 to test.

$ touch file-with-a-name-long-enough-to-wrap-the-screen

$ mkdir .hidden-folder .other-hidden-folder

$ chmod 777 .hidden-folder .other-hidden-folder

$ ls -la

<manually change column width of terminal session to less than hidden folder name>

$ ls -la

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