diff --git a/core/src/com/riiablo/engine/client/CursorMovementSystem.java b/core/src/com/riiablo/engine/client/CursorMovementSystem.java
index 75d739ba..be7633df 100644
--- a/core/src/com/riiablo/engine/client/CursorMovementSystem.java
+++ b/core/src/com/riiablo/engine/client/CursorMovementSystem.java
@@ -102,7 +102,7 @@ public class CursorMovementSystem extends BaseSystem {
         Vector2 position = mPosition.get(src).position;
         iso.toTile(tmpVec2.set(position));
 
-        Riiablo.cursor.setItem(null);
+        Riiablo.charData.dropCursor();
         if (socket == null) {
           factory.createItem(cursor, tmpVec2);
         } else {
diff --git a/core/src/com/riiablo/save/CharData.java b/core/src/com/riiablo/save/CharData.java
index 32f36c23..7e0504c1 100644
--- a/core/src/com/riiablo/save/CharData.java
+++ b/core/src/com/riiablo/save/CharData.java
@@ -380,6 +380,10 @@ public class CharData implements ItemData.UpdateListener, Pool.Poolable {
     return itemData;
   }
 
+  public void dropCursor() {
+    itemData.drop();
+  }
+
   public void itemToCursor(int i) {
     itemData.pickup(i);
   }
diff --git a/core/src/com/riiablo/save/ItemData.java b/core/src/com/riiablo/save/ItemData.java
index 3f27166a..737b80d2 100644
--- a/core/src/com/riiablo/save/ItemData.java
+++ b/core/src/com/riiablo/save/ItemData.java
@@ -212,6 +212,14 @@ public class ItemData {
     setLocation(item, Location.CURSOR);
   }
 
+  // TODO: should item location change if the item is dropped? is this what UNK3 and UNK5 represent?
+  void drop() {
+    assert cursor != INVALID_ITEM;
+    Item item = itemData.get(cursor);
+    cursor = INVALID_ITEM;
+    setLocation(item, null);
+  }
+
   void storeCursor(StoreLoc storeLoc, int x, int y) {
     assert cursor != INVALID_ITEM;
     store(storeLoc, cursor, x, y);