You must either be in the wrong directory or it’s a Cloud9 issue. If you go to terminal, are the files there?
Sure looks like you’re running rails new in ~/, then looking in ~/workspace.
We all go down a path like that once in a while 
Especially when first learning a new system and trying to keep so many things straight at once…
i was looking at cloud9 and did a screencast of my playthrough. It’s at https://www.youtube.com/watch?v=k7_Q90TZXow – it might help, i don’t know. it’s definitely not a pro screencast…