I updated your jsfiddle. Does it solve your problem?
$(document).ready(function(){
$('.list li.expandable ul').hide();
$('.list li.expandable ul').css({ opacity: 0 });;
$('.expandable').click(function(){
if ($(this).find("> UL").is(":visible")) {
$(this).find("> UL").fadeTo(2000, 0, function() {
$(this).slideToggle("slow");
});
} else {
$(this).find('> ul').slideToggle('slow', function() {
$(this).fadeTo(2000, 1);
//return false;
});
}
});
});