I think you're missing an update of Drag._StartMouse in _drag.
I added the last line here and the example worked:
_drag: function(e) {
e.stop();
// Drag._StartPos contains the element position , when
the drag hast starteds
var vDiff = Drag._diff(e.mouse().page, Drag._StartMouse);
Drag._StartMouse = e.mouse().page;
Eric
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