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It appears that in a recent update, the hierarchy link between a custom level (parent to Epic) lost linkage to the child level. Can anybody tell me what might have happened? We have hundreds of issues that now need to be re-linked.
Support came through - dead simple though not terribly intuitive:
That Story issue type that is currently on top of the Epic was manually added since you can see the "Remove" link in the "Actions" column.
To make the Story issue type below the Epic again you would need to remove the manual entry (by clicking the Remove link) and the Story issue type will be below it since it will be encompass by the "All other standard issue types" option, which is the default hierarchy as explained here Configuring initiatives and other hierarchy levels.
I too facing same issue, Unable to move/configure, EPIC->Story...Something was changed recently.