Same problem here.
System: Mint 18.3 with kernel 4.15.0-55-generic
(Problem seems not to be dependent on kernel version. Had this effect with 
earlier kernel versions too)
Desktop: MATE with lightdm

Reproduction: Open two folders in default file manager of mate. Then
drag files from one folder to another folder in a seperate window while
pressing the shift key. After ~ 10 files copied the problem occurs.

Reproduction 2: Open a folder and drag and drop files (small .mp4 video
clips) from a folder to XPlayer (Medienwiedergabe). Problem occurs after
around 10 files or sooner. (VLC seems to run fine though).

Mouse can be moved but klicks do not work. No left, right, middle,
scrolling ... nothing. Keyboard works fine. Unplugging and plugging
mouse does not help.

How to solve the problem: Reboot. Nothing else worked for me. Monitor
has no touch screen. "Gesettings" command did not help. Killing
nautilus, file-roller, rapidsvn, nautilus-desktop, nemo is not
applicable (but still tried it) and/but did not help too.

During the copy process the default mouse icon changes from normal mouse
pointer to this hand symbol with an arrow on the bottom right side
pointing to the left top corner and the file icon symbol of the file
that was to be copied (grabbed).

Hope this gets fixed soon. The problem began 2009??? Very annoying bug
renders the system more or uselesse useless. Reboot is the only fix for
me right now. :((

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

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

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