diff --git a/Source/engine/render/scrollrt.cpp b/Source/engine/render/scrollrt.cpp
index dfdd273d1..847b90696 100644
--- a/Source/engine/render/scrollrt.cpp
+++ b/Source/engine/render/scrollrt.cpp
@@ -263,13 +263,15 @@ void DrawCursor(const Surface &out)
 
 	// Copy the buffer before the item cursor and its 1px outline are drawn to a temporary buffer.
 	const int outlineWidth = !MyPlayer->HoldItem.isEmpty() ? 1 : 0;
+	Displacement offset = !MyPlayer->HoldItem.isEmpty() ? Displacement { cursSize / 2 } : Displacement { 0 };
+	Point cursPosition = MousePosition - offset;
 
 	Rectangle &rect = cursor.rect;
-	rect.position.x = MousePosition.x - outlineWidth;
+	rect.position.x = cursPosition.x - outlineWidth;
 	rect.size.width = cursSize.width + 2 * outlineWidth;
 	Clip(rect.position.x, rect.size.width, out.w());
 
-	rect.position.y = MousePosition.y - outlineWidth;
+	rect.position.y = cursPosition.y - outlineWidth;
 	rect.size.height = cursSize.height + 2 * outlineWidth;
 	Clip(rect.position.y, rect.size.height, out.h());
 
@@ -277,7 +279,7 @@ void DrawCursor(const Surface &out)
 		return;
 
 	BlitCursor(cursor.behindBuffer, rect.size.width, &out[rect.position], out.pitch(), rect.size.width, rect.size.height);
-	DrawSoftwareCursor(out, MousePosition + Displacement { 0, cursSize.height - 1 }, pcurs);
+	DrawSoftwareCursor(out, cursPosition + Displacement { 0, cursSize.height - 1 }, pcurs);
 }
 
 /**
diff --git a/Source/inv.cpp b/Source/inv.cpp
index 8350fc7aa..dee00b18f 100644
--- a/Source/inv.cpp
+++ b/Source/inv.cpp
@@ -288,12 +288,6 @@ int FindSlotUnderCursor(Point cursorPosition, Size itemSize)
 	int i = cursorPosition.x;
 	int j = cursorPosition.y;
 
-	if (!IsHardwareCursor()) {
-		// offset the cursor position to match the hot pixel we'd use for a hardware cursor
-		i += itemSize.width * INV_SLOT_HALF_SIZE_PX;
-		j += itemSize.height * INV_SLOT_HALF_SIZE_PX;
-	}
-
 	for (int r = 0; r < NUM_XY_SLOTS; r++) {
 		int xo = GetRightPanel().position.x;
 		int yo = GetRightPanel().position.y;
@@ -554,8 +548,6 @@ void CheckInvPaste(Player &player, Point cursorPosition)
 	}
 	CalcPlrInv(player, true);
 	if (&player == MyPlayer) {
-		if (player.HoldItem.isEmpty() && !IsHardwareCursor())
-			SetCursorPos(MousePosition + Displacement { itemSize * INV_SLOT_HALF_SIZE_PX });
 		NewCursor(player.HoldItem);
 	}
 }
@@ -819,11 +811,6 @@ void CheckInvCut(Player &player, Point cursorPosition, bool automaticMove, bool
 				holdItem.clear();
 			} else {
 				NewCursor(holdItem);
-				if (!IsHardwareCursor() && !dropItem) {
-					// For a hardware cursor, we set the "hot point" to the center of the item instead.
-					Size cursSize = GetInvItemSize(holdItem._iCurs + CURSOR_FIRSTITEM);
-					SetCursorPos(cursorPosition - Displacement(cursSize / 2));
-				}
 			}
 		}
 	}
diff --git a/Source/qol/stash.cpp b/Source/qol/stash.cpp
index 14e5105e3..630554d13 100644
--- a/Source/qol/stash.cpp
+++ b/Source/qol/stash.cpp
@@ -94,12 +94,10 @@ void CheckStashPaste(Point cursorPosition)
 	Player &player = *MyPlayer;
 
 	const Size itemSize = GetInventorySize(player.HoldItem);
-	const Displacement hotPixelOffset = Displacement(itemSize * INV_SLOT_HALF_SIZE_PX);
-	if (IsHardwareCursor()) {
-		// It's more natural to select the top left cell of the region the sprite is overlapping when putting an item
-		//  into an inventory grid, so compensate for the adjusted hot pixel of hardware cursors.
-		cursorPosition -= hotPixelOffset;
-	}
+
+	// It's more natural to select the top left cell of the region the sprite is overlapping when putting an item
+	//  into an inventory grid, so compensate for the adjusted hot pixel of item cursors.
+	cursorPosition -= Displacement(itemSize * INV_SLOT_HALF_SIZE_PX);
 
 	if (!IsItemAllowedInStash(player.HoldItem))
 		return;
@@ -111,10 +109,6 @@ void CheckStashPaste(Point cursorPosition)
 		player.HoldItem.clear();
 		PlaySFX(IS_GOLD);
 		Stash.dirty = true;
-		if (!IsHardwareCursor()) {
-			// To make software cursors behave like hardware cursors we need to adjust the hand cursor position manually
-			SetCursorPos(cursorPosition + hotPixelOffset);
-		}
 		NewCursor(CURSOR_HAND);
 		return;
 	}
@@ -165,10 +159,6 @@ void CheckStashPaste(Point cursorPosition)
 
 	Stash.dirty = true;
 
-	if (player.HoldItem.isEmpty() && !IsHardwareCursor()) {
-		// To make software cursors behave like hardware cursors we need to adjust the hand cursor position manually
-		SetCursorPos(cursorPosition + hotPixelOffset);
-	}
 	NewCursor(player.HoldItem);
 }
 
@@ -243,11 +233,6 @@ void CheckStashCut(Point cursorPosition, bool automaticMove)
 			holdItem.clear();
 		} else {
 			NewCursor(holdItem);
-			if (!IsHardwareCursor()) {
-				// For a hardware cursor, we set the "hot point" to the center of the item instead.
-				Size cursSize = GetInvItemSize(holdItem._iCurs + CURSOR_FIRSTITEM);
-				SetCursorPos(cursorPosition - Displacement(cursSize / 2));
-			}
 		}
 	}
 }
diff --git a/test/fixtures/timedemo/WarriorLevel1to2/demo_0.dmo b/test/fixtures/timedemo/WarriorLevel1to2/demo_0.dmo
index a7c10bc76..ebebbb491 100644
Binary files a/test/fixtures/timedemo/WarriorLevel1to2/demo_0.dmo and b/test/fixtures/timedemo/WarriorLevel1to2/demo_0.dmo differ