Hi mb0
If I had to guess, I'd say this might be caused because the directory structure is deeper than rm can reach.
@spence91: I think this might work better:
while [ 1 ] ; 
do 
 cd ./1 || break ; 
done ; 
cd ../
while [ 1 ] ;
do 
 ls ./1 || break ;
 rm -fr ./1
 cd ../
done