OK, I observed this bug for a bit and here's what I could figure out:
http://i.imgur.com/1DsMrQH.png - admire my mad Paint skills. I wanted to grab a screenshot with NotEye, but it resulted in hiding the gauntlet cursor AND moving the yellow arrows cursor somewhere else for some reason, so I had to make this image instead.
So, whenever this bug happens, the game behaves as if it can't decide where yellow arrows should be, making them jump from one tile to adjacent and back in rapid, but not constant pace. However when you move your mouse (moving it several pixels also stops the jumping of the yellow arrows), it turns out the now visible gauntlet cursor is actually on a different tile, as pictured. When this bug happens and you try to move your mouse slowly, you'll see that the game incorrectly detects on where exactly gauntlet cursor is, the possible difference being anywhere from a few pixels to as much as the whole cursor size. So, it's possible to have one cursor pointing to one tile and the other cursor highlighting another tile. If you get the gauntlet to a position messing up the detection (either to where you started or a new one), the jumping yellow arrows part of the bug will reactivate.
You can get rid of this problem by moving the gauntlet cursor to the edge of the screen. If, as pictured, the game thinks the gauntlet cursor is higher than it really is, you need to move your mouse to the top edge of the screen. When the game thinks the gauntlet cursor is more to the left than it really is (bug can happen horizontally or vertically, never had it happen both at once yet though), you need to move your mouse to the left edge etc. This fixes the cursor position detection.
To make the bug appear again you need to alt+tab from and back to the game and then move your PC enough to make the screen scroll to adjust to PC's position.
I haven't been testing this extensively, but it seems I can reproduce this rather consistently after it appears for the first time.