It's a name of the project. It can be different from the folder name. You can set it via the menu File - Rename Project.
No, it's not related to package.json, this name is stored in the .idea folder (the project's .iml configuration file has this name). So if you opened your project in WebStorm before you renamed it in the OS, the .iml file still has the old name of the folder.
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Can you please try the following: select the project root in the Project view, then use Refactor - Rename and select Rename project. That should help. Meanwhile, we'll see why File - Rename project doesn't work in this case.
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