I don't know what I did, TextMate 2 expanded the entire files of my project in the sidebar. Now the performance drastically went down. I can't able to figure out how to collapse it.
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You can hold option while clicking the 'Disclosure Arrow' (the little arrow next to the directory name) to recursively collapse all subfolders.
To collapse all the directories without performing the action for every folder, do this:
control+tabto move the focus to the file drawer.
command+up arrowto 'go up a level'.
optionand click the arrow next to your desired folder.