Its just a funny thing Photoshop does with layer blending modes.
The layers in the 'shadows & highlights' folder are what is causing your transparency to turn white. They have layer blending modes applied which are telling them to fill the transparency with white.
You need to merge the 'shadows & highlights' layers, invert it and then use it to create a mask for a black layer. If you can upload the full size file elsewhere I can give you a step by step guide.
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