Every time I drop an item, no matter what it is (use, etc, equip), I get disconnected to the login screen and it says "unable to connect to the game." I was able to drop things with ease earlier, though.
This was happening to me last night too, I tried to drop it about 4 times and ended up just booming the item with 30%s. Edit: I only tried dropping one item at the time. About a half hour later I dropped other items without any problems.