I can confirm awensley's characterization of this bug. I have exactly
the same issue:

OS: Ubuntu 16.04 x64
Kernel: 4.10.0-37-generic
X.Org X Server: 1:7.7+13ubuntu3 (v1.19.3)

Monitor 1: 1920 x 1080 - Laptop's Native Monitor
Monitor 2: 1920 x 1080 - DisplayLink (USB) connected AOC E2775SJ Monitor

Please note that DisplayLink's FAQ points to this bug:
http://support.displaylink.com/knowledgebase/articles/825819-mouse-cursor-flickers-on-the-primary-ubuntu-screen

Please let me know what else is needed to prioritize fixing this issue.

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https://bugs.launchpad.net/bugs/1278223

Title:
  Mouse Flickering after adding 3rd Monitor

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