
It looks like there's a slight bug with the drag icon - see the attached image. If you drag in item from deep within a hierarchy, when you get outside the whole list, the icon shows the valid "rectangle" as though you're over a valid drop target.
If you drag a top-level item, like Biology, then everything's fine, and the invalid drop icon shows when you get above the main list.
If someone can point me in the right direction I'd be happy to try to find a fix for this.