I had the same issue last night. I was running into a building in Rahu, and the moment I went to click the NPC i was heading for, my mouse went straight into the center of the screen. I could move it maybe 50 pixels or so, and it would rubber band right back to the center. Not sure if it was linked, but it seemed to happen at the same time I got within ear shot of the drummer NPC in rahu, and a player jamming with him.

Resetting the client seemed to resolve the issue. I have never experienced this before in game, or out of game.