A new class of folded subspace codes for noncoherent network coding is presented. The codes can correct insertions and deletions beyond the unique decoding radius for any code rate $Rin[0,1]$. An efficient interpolation-based decoding algorithm for this code construction is given which allows to correct insertions and deletions up to the normalized radius $s(1-((1/h+h)/(h-s+1))R)$, where $h$ is the folding parameter and $sleq h$ is a decoding parameter. The algorithm serves as a list decoder or as a probabilistic unique decoder that outputs a unique solution with high probability. An upper bound on the average list size of (folded) subspace codes and on the decoding failure probability is derived. A major benefit of the decoding scheme is that it enables probabilistic unique decoding up to the list decoding radius.
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