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Colon indentation is supposed to line up with bullet indentation when you follow those instructions. And it once did, but it was broken ages ago and there's no proper alignment now no matter how you do it.
I kinda just avoid colon indentation entirely now.
Suddenly I'm... still rotating Fallen London in my mind even though I've stopped actively playing it.It looks like a double colon on a single-level bullet creates extra space above and below the line, so I guess a triple colon is the way to go.
Edit: And for a second-level bullet point, a triple colon breaks the indentation line (the faint dotted line running down the left) whereas a quadruple colon does not. e.g. the High-Five Left Hanging example on Joey. So it looks like the general rule for colon indentation is "bullet level + 2"
Edited by Twiddler

I am confused about how colon indentation is supposed to work. The same number of colons (three) in the Friends example on Paste Eater and the corresponding trope entry on the recap page is creating a significantly different amount of indentation. Experimenting with preview shows that the folder is causing the difference. Text Formatting Rules - Quotes Formatting is not clear on the matter, because the text says to use double colons for a first-level bullet point and add a colon for each additional-level bullet point, but the actual example uses a triple colon for a first-level bullet point.
I'd like to get this cleared up: how many colons should be used for a first-level bullet point (both within and without a folder)?