diff --git a/src/interaction/InteractionManager.js b/src/interaction/InteractionManager.js
index d5c1467..b50fcc7 100644
--- a/src/interaction/InteractionManager.js
+++ b/src/interaction/InteractionManager.js
@@ -437,6 +437,11 @@
 
         this.cursor = this.defaultCursorStyle;
 
+        // Resets the flag as set by a stopPropagation call. This flag is usually reset by a user interaction of any kind,
+        // but there was a scenario of a display object moving under a static mouse cursor.
+        // In this case, mouseover and mouseevents would not pass the flag test in dispatchEvent function
+        this.eventData.stopped = false;
+
         this.processInteractive(this.mouse.global, this.renderer._lastObjectRendered, this.processMouseOverOut, true );
 
         if (this.currentCursorStyle !== this.cursor)