Have the same issue. My system:
Ubuntu 16.04.5, latest updates. Unity desktop.
Nvidia 384.130 driver.
DisplayLink 4.2, tried also with 4.1, the same issue.

I also uploaded 12 seconds video: https://www.youtube.com/watch?v=vVwa-
cVU_cA

Can't confirm if this is Nvidia or DisplayLink or both drivers issue.

For sure, in my case, uninstalling DisplayLink driver everything works
fine.

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https://bugs.launchpad.net/bugs/1684240

Title:
  Lagging square around mouse pointer

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