Kelvin,
Since it is only Launchpad that is affected, it's not as big of a deal. You can simply ignore the extra icon folders, or we can reset/rebuild the Launchpad database. It is an actual SQLite 3.0 database stored in your User folder.
Launchpad is similar to the Dock, but it updates itself automatically as applications are added/removed from the Applications and Utilities folders. Icons in the Dock can be removed and the application itself is untouched. In Launchpad, if you remove something, it removes the application from your HD as well. When you install software, it is automatically added to Launchpad. You can only delete apps added from the App Store, by clicking and holding on icon until they all start shaking, then clicking the X in the upper left of the icon - similar to an iOS device. System files and apps installed manually from discs/DMGs cannot be removed this way.
You can reset the Launchpad itself to the default by entering a few commands into Terminal:
rm ~/Library/Application\ Support/Dock/*.db
killall Dock
This will delete the current Launchpad database, then kill the process in the system. It will then rebuild the Launchpad database the next time you open Launchpad.
As always, make sure you have a current backup before performing any troubleshooting steps provided here. If the rebuild still contains the extra untitled folders, we can explore further.
C