I have the same bug in a recent build from xenial.  I tried downgrading
xorg to precise, no difference, mouse still hits the wall when output to
internal monitor is turned off.  If both monitors are turned on, the
problem does not occur.  But I like to conserve my laptop screen when I
am connected to an external monitor.

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https://bugs.launchpad.net/bugs/883319

Title:
  xrandr --scale restricts area in which mouse moves

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