Sometimes when creating sortable user interface widgets, some various quirks might happen. One of these is that just after starting dragging element, it jumps of from original location. Element will move above cursor for roughly height of it's parent container minus one sortable element.
I turned out that properly styled container will remedy jumping issue. The point is to make it's overflow auto:
That's it! Now sorted item should not jump anymore. Credits goes to: http://stackoverflow.com/a/24122186/5444623
This is how described bug look like:
After applying fix dragged element should be under cursor: