I have the same problem in Ubuntu 16.04.3, but only for certain
applications (jabref and texmaker so far).

The comment by @spoolboyy helped: I was using a USB mouse and clicking
with the touchpad stopped the drag-and-drop mode.

I am using a Thinkpad X1 Carbon laptop.

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https://bugs.launchpad.net/bugs/402892

Title:
  Mouse cursor gets stuck in "drag and drop" mode

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