Usb drive only 256 folders?

My usb drive goes into read only mode when there is 256 folders in it.

Can I get around this?

Are all usb drives like this or does mine suck?
 
size (the capacity) matters: USB thumbdrives are formatted FAT32 and have restrictions or limits based upon that architecture. While the 256 directory count is bizarre, if the capacity is small, then both the file count and directory count will be low.
 
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