I have found that the "Align dynamically wrapped lines to indentation depth" setting in Settings -> Editor Component -> Appearance -> General -> Dynamic Word Wrap to be the culprit. Changing this setting to anything under 20% solves the frozen cursor problem.
This setting doesn't actually seem to work either. Setting it anywhere from 20% to 80% (which is the maximum) has no difference. If the line wraps it continues from a distance identical to the indentation. And setting it to 10% is the same as disabling it.
